UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549__________________________

Form 10-K(Mark One)

þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018or

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from toCommission file number: 001-15787

MetLife, Inc.(Exactnameofregistrantasspecifiedinitscharter)

Delaware 13-4075851(State or other jurisdiction of

incorporation or organization) (I.R.S. Employer

Identification No.)

200 Park Avenue, New York, N.Y. 10166-0188(Address of principal executive offices) (Zip Code)

(212) 578-9500(Registrant’stelephonenumber,includingareacode)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Name of each exchange on which registeredCommon Stock, par value $0.01 New York Stock Exchange

Floating Rate Non-Cumulative Preferred Stock, Series A, par value $0.01 New York Stock ExchangeDepositary Shares each representing a 1/1,000th interest in a share of 5.625%

Non-Cumulative Preferred Stock, Series E New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C, par value $0.01

Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D, par value $0.01Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes þNo ¨Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ¨No þIndicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant

was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þNo ¨Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or

for such shorter period that the registrant was required to submit such files). Yes þNo ¨Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive

proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,”“accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer ¨

Non-accelerated filer

¨

Smaller reporting company ¨

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards providedpursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨No þThe aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant at June 30, 2018 was approximately $43.6 billion.At February 14 , 2019 , 957,270,842 shares of the registrant’s common stock were outstanding.

DOCUMENTS INCORPORATED BY REFERENCEPart III of this Form 10-K incorporates by reference certain information from the registrant’s definitive proxy statement for the Annual Meeting of Shareholders to be held on June 18, 2019 , to

be filed by the registrant with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the year ended December 31, 2018 .

Table of Contents

Page

Part I

Item 1. Business 4Item 1A. Risk Factors 38Item 1B. Unresolved Staff Comments 61Item 2. Properties 61Item 3. Legal Proceedings 61Item 4. Mine Safety Disclosures 61

Part II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 62Item 6. Selected Financial Data 64Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 66Item 7A. Quantitative and Qualitative Disclosures About Market Risk 171Item 8. Financial Statements and Supplementary Data 180Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 366Item 9A. Controls and Procedures 366Item 9B. Other Information 369

Part III

Item 10. Directors, Executive Officers and Corporate Governance 369Item 11. Executive Compensation 369Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 369Item 13. Certain Relationships and Related Transactions, and Director Independence 372Item 14. Principal Accountant Fees and Services 373

Part IV

Item 15. Exhibits and Financial Statement Schedules 373Item 16. Form 10-K Summary 373

Exhibit Index 374

Signatures 384

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As used in this Form 10-K, “MetLife,” the “Company,” “we,” “our” and “us” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, itssubsidiaries and affiliates.

Note Regarding Forward-Looking Statements

This Annual Report on Form 10‑K, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, may contain orincorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Actof 1995. Forward-looking statements give expectations or forecasts of future events. These statements can be identified by the fact that they do not relate strictly tohistorical or current facts. They use words and terms such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “will,” and other words andterms of similar meaning, or are tied to future periods, in connection with a discussion of future performance. In particular, these include statements relating tofuture actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcomeof contingencies such as legal proceedings, trends in operations and financial results.

Many factors will be important in determining the results of MetLife, Inc., its subsidiaries and affiliates. Forward-looking statements are based on ourassumptions and current expectations, which may be inaccurate, and on the current economic environment, which may change. These statements are not guaranteesof future performance. They involve a number of risks and uncertainties that are difficult to predict. Results could differ materially from those expressed or impliedin the forward-looking statements. Risks, uncertainties, and other factors that might cause such differences include the risks, uncertainties and other factorsidentified in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission. These factors include: (1) difficult economic conditions, including risksrelating to interest rates, credit spreads, equity, real estate, obligors and counterparties, currency exchange rates, derivatives, and terrorism and security; (2) adverseglobal capital and credit market conditions, which may affect our ability to meet liquidity needs and access capital, including through our credit facilities;(3) downgrades in our claims paying ability, financial strength or credit ratings; (4) availability and effectiveness of reinsurance, hedging or indemnificationarrangements; (5) increasing cost and limited market capacity for statutory life insurance reserve financings; (6) the impact on us of changes to and implementationof the wide variety of laws and regulations to which we are subject; (7) regulatory, legislative or tax changes relating to our operations that may affect the cost of,or demand for, our products or services; (8) adverse results or other consequences from litigation, arbitration or regulatory investigations; (9) legal, regulatory andother restrictions affecting MetLife, Inc.’s ability to pay dividends and repurchase common stock; (10) MetLife, Inc.’s primary reliance, as a holding company, ondividends from subsidiaries to meet free cash flow targets and debt payment obligations and the applicable regulatory restrictions on the ability of the subsidiariesto pay such dividends; (11) investment losses, defaults and volatility; (12) potential liquidity and other risks resulting from our participation in a securities lendingprogram and other transactions; (13) changes to investment valuations, allowances and impairments taken on investments, and methodologies, estimates andassumptions; (14) differences between actual claims experience and underwriting and reserving assumptions; (15) political, legal, operational, economic and otherrisks relating to our global operations; (16) competitive pressures, including with respect to pricing, entry of new competitors, consolidation of distributors, thedevelopment of new products by new and existing competitors, and for personnel; (17) the impact of technological changes on our businesses; (18) catastrophelosses; (19) a deterioration in the experience of the closed block established in connection with the reorganization of Metropolitan Life Insurance Company; (20)impairment of goodwill or other long-lived assets, or the establishment of a valuation allowance against our deferred income tax asset; (21) changes in assumptionsrelated to deferred policy acquisition costs, deferred sales inducements or value of business acquired; (22) exposure to losses related to guarantees in certainproducts; (23) ineffectiveness of risk management policies and procedures or models; (24) a failure in our cybersecurity systems or other information securitysystems or our disaster recovery plans; (25) any failure to protect the confidentiality of client information; (26) changes in accounting standards; (27) our associatestaking excessive risks; (28) difficulties in marketing and distributing products through our distribution channels; (29) increased expenses relating to pension andother postretirement benefit plans; (30) inability to protect our intellectual property rights or claims of infringement of others’ intellectual property rights; (31)difficulties, unforeseen liabilities, asset impairments, or rating agency actions arising from business acquisitions and dispositions, joint ventures, or other legalentity reorganizations; (32) unanticipated or adverse developments that could adversely affect our expected operational or other benefits from the separation ofBrighthouse Financial, Inc. and its subsidiaries; (33) the possibility that MetLife, Inc.’s Board of Directors may influence the outcome of stockholder votes throughthe voting provisions of the MetLife Policyholder Trust; (34) provisions of laws and our incorporation documents that may delay, deter or prevent takeovers andcorporate combinations involving MetLife; and (35) other risks and uncertainties described from time to time in MetLife, Inc.’s filings with the U.S. Securities andExchange Commission.

MetLife, Inc. does not undertake any obligation to publicly correct or update any forward-looking statement if MetLife, Inc. later becomes aware that suchstatement is not likely to be achieved. Please consult any further disclosures MetLife, Inc. makes on related subjects in reports to the U.S. Securities and ExchangeCommission.

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Note Regarding Reliance on Statements in Our Contracts

See “Exhibit Index — Note Regarding Reliance on Statements in Our Contracts” for information regarding agreements included as exhibits to this AnnualReport on Form 10-K.

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Part I

Item 1. Business

Index to Business

PageBusiness Overview 5Segments and Corporate & Other 7Policyholder Liabilities 17Underwriting and Pricing 17Reinsurance Activity 19Regulation 21Company Ratings 34Competition 35Employees 36Executive Officers 37Trademarks 38Available Information 38

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Business Overview

As used in this Form 10-K, “MetLife,” the “Company,” “we,” “our” and “us” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, itssubsidiaries and affiliates.

MetLife is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. We hold leadingmarket positions in the United States, Japan, Latin America, Asia, Europe and the Middle East.

We are also one of the largest institutional investors in the United States with a $ 452.0 billion general account portfolio invested primarily in investment gradecorporate bonds, structured finance securities, mortgage loans and U.S. Treasury and agency securities, as well as real estate and corporate equity, at December 31,2018 .

Our well-recognized brand, leading market positions, competitive and innovative product offerings and financial strength and expertise should help drivefuture growth and enhance shareholder value, building on a long history of fairness, honesty and integrity. We continue to pursue our refreshed enterprise strategy,focusing on transforming the Company to become more digital, driving efficiencies and innovation to achieve competitive advantage, and simplified, decreasingthe costs and risks associated with our highly complex industry to customers and shareholders. One MetLife remains at the center of everything we do:collaborating, sharing best practices, and putting the enterprise first. Digital and simplified are the key enablers of our strategic cornerstones, all of which satisfythe criteria of our Accelerating Value strategic initiative by offering customers truly differentiated value propositions that allow us to establish clear competitiveadvantages and ultimately drive higher levels of free cash flow:

● Optimizevalueandrisk

– Focus on in-force and new business opportunities using Accelerating Value analysis

– Optimize cash and value

– Balance risk across MetLife

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● Driveoperationalexcellence

– Become a more efficient, high performance organization

– Focus on the customer with a disciplined approach to unit cost improvement

● Strengthendistributionadvantage

– Transform our distribution channels to drive productivity and efficiency through digital enablement, improved customer persistency and deeper

customer relationships

● Delivertherightsolutionsfortherightcustomers

– Use customer insights to deliver differentiated value propositions - products, services and experiences to win the right customers and earn their

loyalty

MetLife is organized into five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MetLife Holdings. In addition, theCompany reports certain of its results of operations in Corporate & Other. See “— Segments and Corporate & Other” and Note 2 of the Notes to the ConsolidatedFinancial Statements for further information on the Company’s segments and Corporate & Other. Management continues to evaluate the Company’s segmentperformance and allocated resources and may adjust related measurements in the future to better reflect segment profitability.

In the United States, we provide a variety of insurance and financial services products, including life, dental, disability, property and casualty, guaranteedinterest, stable value and annuities to both individuals and groups.

Outside the United States, we provide life, medical, dental, credit and other accident & health insurance, as well as annuities, endowment and retirement &savings products to both individuals and groups. We believe these businesses will continue to grow more quickly than our United States businesses.

Revenues derived from FedEx Corporation were $6.0 billion for the year ended December 31, 2018 , which represented 12% of consolidated premiums,universal life and investment-type product policy fees and other revenues. The revenue was from a single premium received for a pension risk transfer. Revenuesderived from any other customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and other revenues for theyears ended December 31, 2018 , 2017 and 2016 .

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Segments and Corporate & Other

U.S.

ProductOverview

Our businesses in the U.S. segment offer a broad range of protection products and services aimed at serving the financial needs of our customers throughouttheir lives. These products are sold to corporations and their respective employees, other institutions and their respective members, as well as individuals. OurU.S. segment is organized into three businesses: Group Benefits, Retirement and Income Solutions (“RIS”) and Property & Casualty.

Group Benefits

We have built a leading position in the United States group insurance market through long-standing relationships with many of the largest corporateemployers in the United States.

Our Group Benefits business offers life, dental, group short- and long-term disability (“LTD”), individual disability, accidental death and dismemberment(“AD&D”), vision and accident & health coverages, as well as prepaid legal plans. We also sell administrative services-only (“ASO”) arrangements to someemployers.

Major ProductsTerm Life Insurance Provides a guaranteed benefit upon the death of the insured for a specified time period in return for the periodic payment of

premiums. Premiums may be guaranteed at a level amount for the coverage period or may be non-level and non-guaranteed.Term contracts expire without value at the end of the coverage period when the insured party is still living.

Variable Life Insurance Provides insurance coverage through a contract that gives the policyholder flexibility in investment choices and, depending onthe product, in premium payments and coverage amounts, with certain guarantees. Premiums and account balances can bedirected by the policyholder into a variety of separate account investment options or directed to the Company’s general account.In the separate account investment options, the policyholder bears the entire risk of the investment results. With some products,by maintaining certain premium level, policyholders may have the advantage of various guarantees that may protect the deathbenefit from adverse investment experience.

Universal Life Insurance Provides insurance coverage on the same basis as variable life, except that premiums, and the resulting accumulated balances,are allocated only to the Company’s general account. With some products, by maintaining a certain premium level,policyholders may have the advantage of various guarantees that may protect the death benefit from adverse investmentexperience.

Dental Insurance Provides insurance and ASO arrangements that assist employees, retirees and their families in maintaining oral health whilereducing out-of-pocket expenses.

Disability For groups and individuals, benefits such as income replacement, payment of business overhead expenses or mortgageprotection, in the event of the disability of the insured.

Accident & Health Insurance Provides accident, critical illness or hospital indemnity coverage to the insured.

Retirement and Income Solutions

Our RIS business provides funding and financing solutions that help institutional customers mitigate and manage liabilities primarily associated with theirqualified, nonqualified and welfare employee benefit programs using a spectrum of life and annuity-based insurance and investment products.

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Major ProductsStable Value Products • General account guaranteed interest contracts (“ GIC s”) are designed to provide stable value investment options within

tax-qualified defined contribution plans by offering a fixed maturity investment with a guarantee of liquidity at contractvalue for participant transactions.

• Separate account GIC s are available to defined contribution plan sponsors by offering market value returns on separate

account investments with a general account guarantee of liquidity at contract value.

• Private floating rate funding agreements are generally privately-placed, unregistered investment contracts issued asgeneral account obligations with interest credited based on the three-month London Interbank Offered Rate (“LIBOR”).These agreements are used for money market funds, securities lending cash collateral portfolios and short-terminvestment funds.

Pension Risk Transfers General account and separate account annuities are offered in connection with defined benefit pension plans whichinclude single premium buyouts allowing for full or partial transfers of pension liabilities.

• General account annuities include nonparticipating group contract benefits purchased for retired employees or activeemployees covered under terminating or ongoing pension plans.

• Separate account annuities include both participating and non-participating group contract benefits. Participating

contract benefits are purchased for retired, terminated, or active employees covered under active or terminated pensionplans. The assets supporting the guaranteed benefits for each contract are held in a separate account, however, theCompany fully guarantees all benefit payments. Non-participating contracts have economic features similar to ourgeneral account product, but offer the added protection of an insulated separate account. Under accounting principlesgenerally accepted in the United States of America (“GAAP”), these annuity contracts are treated as general accountproducts.

Institutional Income Annuities General account contracts that are guaranteed payout annuities purchased for employees upon retirement or termination ofemployment. They can be life or non-life contingent non-participating contracts which do not provide for any loan or cashsurrender value and, with few exceptions, do not permit future considerations.

Tort Settlements • Structured settlement annuities are customized annuities designed to serve as an alternative to a lump sum payment in alawsuit initiated because of personal injury, wrongful death, or a workers’ compensation claim or other claim fordamages. Surrenders are generally not allowed, although commutations are permitted in certain circumstances.Guaranteed payments consist of life contingent annuities, term certain annuities and lump sums.

Capital Markets Investment Products • Funding agreement-backed notes are part of a medium term note program, under which funding agreements are issued toa special-purpose trust that issues marketable notes in U.S. dollars or foreign currencies. The proceeds of these noteissuances are used to acquire a funding agreement with matching interest and maturity payment terms from MetropolitanLife Insurance Company (“MLIC”). The notes are underwritten and marketed by major investment banks’ broker-dealeroperations and are sold to institutional investors.

• Funding agreement-backed commercial paper is issued by a special purpose limited liability company which deposits theproceeds under a master funding agreement issued to it by MLIC. The commercial paper is issued in U.S. dollars orforeign currencies, receives the same short-term credit rating as MLIC and is marketed by major investment banks’broker-dealer operations.

• Through the Federal Home Loan Bank (“FHLB”) advance program, certain of our insurance subsidiaries are members ofregional FHLBs and issue funding agreements to their respective FHLBs. Through the Federal Agricultural MortgageCorporation (“Farmer Mac”) program, MLIC has issued funding agreements to a subsidiary of Farmer Mac.

Other Products and Services Specialized life insurance products and funding agreements designed specifically to provide solutions for fundingpostretirement benefits and company-, bank- or trust-owned life insurance used to finance nonqualified benefit programsfor executives.

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Property & Casualty

Our Property & Casualty business offers personal and commercial lines of property and casualty insurance, including private passenger automobile,homeowners’ and personal excess liability insurance. In addition, we offer to small business owners property, liability and business interruption insurance.

Major ProductsPersonal Auto Insurance Provides coverage for private passenger automobiles, utility automobiles and vans, motorcycles, motor homes, antique or classic

automobiles, trailers, liability, uninsured motorist, no fault or personal injury protection, as well as collision and comprehensiveinsurance.

Homeowners’ Insurance Provides protection for homeowners, renters, condominium owners and residential landlords against losses arising out of damage todwellings and contents from a wide variety of perils, as well as coverage for liability arising from ownership or occupancy.

Commercial Multi-Peril andCommercial Auto Insurance

Provides a broad package of property and liability coverages for small and medium sized apartment buildings, offices, and retailstores, as well as for coverage for motor vehicles owned by a business engaged in commerce that protects the insured againstfinancial loss.

Operations

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Sales Distribution

In the U.S., we market our products and services through various distribution channels. Our Group Benefits and RIS products are sold via sales forcesprimarily comprised of MetLife employees. Personal lines property and casualty insurance products are directly marketed to employees at their employer’sworksite. Personal and commercial lines property and casualty insurance products are also marketed and sold to individuals and small business owners byindependent agents and property and casualty specialists through a direct marketing channel.

Group Benefits Distribution

We distribute Group Benefits products and services through a sales force that is segmented by the size of the target customer. Marketing representativessell either directly to corporate and other group customers or through an intermediary, such as a broker or consultant. In addition, voluntary products are soldby specialists. Employers have been emphasizing voluntary products and, as a result, we have increased our focus on communicating and marketing toemployees in order to further foster sales of those products.

We have entered into several operating joint ventures and other arrangements with third parties to expand opportunities to market and distribute GroupBenefits products and services. We also sell our Group Benefits products and services through sponsoring organizations and affinity groups and provide lifeand dental coverage to certain employees of the U.S. Government.

Retirement and Income Solutions Distribution

We distribute RIS products and services through dedicated sales teams and relationship managers. We may sell products directly to benefit plansponsors and advisors or through brokers, consultants or other intermediaries. In addition, these sales professionals work with individual, group and globaldistribution areas to better reach and service customers, brokers, consultants and other intermediaries.

Property & Casualty Distribution

We market and sell Property & Casualty products through independent agents, property and casualty specialists and brokers.

We are a leading provider of personal lines property and casualty insurance products offered to employees at their employer’s worksite. Marketingrepresentatives market personal lines property and casualty insurance products to employers through a variety of means, including broker referrals andcross-selling to group customers. Once permitted by the employer, MetLife commences marketing efforts to employees, enabling them to purchase coverageand to request payroll deduction over the telephone.

We also offer commercial Property & Casualty products sold primarily through our network of independent agents and group broker relationships.

Asia

ProductOverview

Our Asia segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respective employees.

Major ProductsLife Insurance Provides whole and term life, endowments, universal and variable life, as well as group life products.

Accident &HealthInsurance

Provides a full range of accident & health products, including medical reimbursement, hospitalization, cancer,critical illness, disability, income protection, personal accident coverage and group health products.

Retirement andSavings

Provides both fixed and variable annuities, as well as regular savings products.

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Operations

We operate in 10 jurisdictions throughout Asia, with our largest operation in Japan. We also have an innovation center in Singapore and a data analyticscenter of excellence in Malaysia.

Sales Distribution

Our Asia operations are geographically diverse encompassing both developed and emerging markets. We market our products and services throughdigitally-enabled multi-channel distribution, including career and independent agencies, bancassurance, direct marketing and e-commerce, brokers and otherthird-party distribution channels.

Digitally-enabled face-to-face channels continue to be core to our business in Japan, but other distribution channels, including bancassurance and directmarketing, are critical to Japan’s overall distribution strategy. Our Japan operation’s competitive position in bancassurance is based on robust distributionrelationships with Japan’s mega banks, trust banks and various regional banks. The direct marketing channel focuses on providing accident & health solutionsto customers using traditional television and print media, as well as e-commerce.

Outside of Japan, our distribution strategies vary by market and leverage a combination of career and independent agencies, bancassurance and directmarketing (including inbound and outbound telemarketing, online lead generation and sales). Our expertise in direct marketing is supported by our proprietarydata analytics center of excellence in Malaysia that generates customer insights and improves lead management. In select markets, we use independent brokersand an employee sales force to sell group products.

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LatinAmerica

ProductOverview

Our Latin America segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respectiveemployees.

Major ProductsLifeInsurance

Provides universal, variable and term life products. For a description of these products, see “ — U.S. — ProductOverview — Group Benefits.”

RetirementandSavings

Provides fixed annuities and pension products. Fixed annuities provide for both asset accumulation and assetdistribution needs. Deposits made into deferred annuity contracts are allocated to the Company’s general account andare credited with interest at rates we determine, subject to specified minimums. Fixed income annuities provide aguaranteed monthly income for a specified period of years and/or for the life of the annuitant. Our savings orientedpension products are offered under a mandatory privatized social security system. See Note 3 of the Notes to theConsolidated Financial Statements for information about the disposition of MetLife Afore, S.A. de C.V. (“MetLifeAfore”), the Company’s pension fund management business in Mexico.

Accident& HealthInsurance

Provides group and individual major medical, accidental, and supplemental health products, including AD&D,hospital indemnity, medical reimbursement, and medical coverage for serious medical conditions, as well as dentalproducts.

CreditInsurance

Provides policies designed to fulfill certain loan obligations in the event of the policyholder’s death.

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Operations

In Latin America, our largest operations are in Mexico and Chile.

Sales Distribution

In Latin America, we market our products and services through a multi-channel distribution strategy which varies by geographic region and stage ofmarket development.

The region has an exclusive and captive agency distribution network which also sells a variety of individual life, accident & health, and pension products.In the direct marketing channel, we work with sponsors and telesales representatives selling mainly accident & health and individual life products directly toconsumers. We currently work with active brokers with sales of group and individual life, accident & health, group medical, dental and pension products, andworksite marketing.

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EMEA

ProductOverview

Our EMEA segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respective employees.

Major ProductsLifeInsurance

Provides both traditional and non-traditional life insurance products, such as whole and term life, endowments andvariable life products, as well as group term life programs in most markets.

Accident &HealthInsurance

Provides individual and group personal accident and supplemental health products, including AD&D, hospitalindemnity, scheduled medical reimbursement plans, and coverage for serious medical conditions. In addition, weprovide individual and group major medical coverage in select markets.

RetirementandSavings

Provides fixed annuities and pension products, including group pension programs in select markets. In Romania, weprovide through a specialized pension company a savings oriented pension product under the mandatory privatizedsocial security system.

CreditInsurance

Provides policies designed to fulfill certain loan obligations in the event of the policyholder’s death.

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Operations

We operate in many countries across EMEA, with our largest operations in the Gulf region, Poland, United Kingdom (“U.K.”) and Turkey.

Sales Distribution

Our EMEA operations are geographically diverse encompassing both developed and emerging markets. We hold leading positions in several markets inthe Middle East and Central & Eastern Europe, and focus on attractive niche segments in more developed markets. Emerging markets represent a significantpart of the region’s overall earnings. Our businesses in EMEA employ a multi-channel distribution strategy, including captive and independent agency,bancassurance and direct-to-consumer.

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MetLifeHoldings

ProductOverview

Our MetLife Holdings segment consists of operations relating to products and businesses that we no longer actively market in the United States, such asvariable, universal, term and whole life insurance, variable, fixed and index-linked annuities, and long-term care insurance, as well as the assumed variableannuity guarantees from our former operating joint venture in Japan.

Major ProductsVariable,Universaland TermLifeInsurance

These life products are similar to those offered by our Group Benefits business, except that these products werehistorically marketed to individuals through various retail distribution channels. For a description of these products,see “ — U.S. — Product Overview — Group Benefits.”

WholeLifeInsurance

Provides a benefit upon the death of the insured in return for the periodic payment of a fixed premium over apredetermined period. Whole life insurance includes policies that provide a participation feature in the form ofdividends. Policyholders may receive dividends in cash, or apply them to increase death benefits, increase cashvalues available upon surrender or reduce the premiums required to maintain the contract in-force.

VariableAnnuities

Provides for both asset accumulation and asset distribution needs. Variable annuities allow the contractholder toallocate deposits into various investment options in a separate account, as determined by the contractholder. Incertain variable annuity products, contractholders may also choose to allocate all or a portion of their account to theCompany’s general account and are credited with interest at rates we determine, subject to specified minimums.Contractholders may also elect certain minimum death benefit and minimum living benefit guarantees for whichadditional fees are charged and where asset allocation restrictions may apply.

Fixed andIndexed-LinkedAnnuities

Fixed annuities provide for both asset accumulation and asset distribution needs. Deposits made into deferredannuity contracts are allocated to the Company’s general account and are credited with interest at rates wedetermine, subject to specified minimums. Fixed income annuities provide a guaranteed monthly income for aspecified period of years and/or for the life of the annuitant. Additionally, the Company has issued indexed-linkedannuities which allow the contractholder to participate in returns from equity indices.

Long-termCare

Provides protection against the potentially high costs of long-term health care services. Generally pay benefits toinsureds who need assistance with activities of daily living or have a cognitive impairment.

Corporate&Other

Overview

Corporate & Other contains the excess capital, as well as certain charges and activities, not allocated to the segments, including external integration anddisposition costs, internal resource costs for associates committed to acquisitions and dispositions, enterprise-wide strategic initiative restructuring charges andvarious start-up and developing businesses (including the investment management business through which the Company, as a manager of assets such as globalfixed income and real estate, provides differentiated investment solutions to institutional investors worldwide). Additionally, Corporate & Other includes run-offbusinesses. Corporate & Other also includes interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated withcertain legal proceedings and income tax audit issues. In addition, Corporate & Other includes the elimination of intersegment amounts, which generally relate toaffiliated reinsurance, investment expenses and intersegment loans, which bear interest rates commensurate with related borrowings. As a result of the separationof Brighthouse, for the year ended 2016, Corporate & Other includes corporate overhead costs previously allocated to the former Brighthouse Financial segment.See Note 3 of the Notes to the Consolidated Financial Statements.

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Policyholder Liabilities

We establish, and carry as liabilities, actuarially determined amounts that are calculated to meet policy obligations when a policy matures or is surrendered, aninsured dies or becomes disabled or upon the occurrence of other covered events, or to provide for future annuity payments. Our liabilities for future policy benefitsand claims are established based on estimates by actuaries of how much we will need to pay for future benefits and claims. For life insurance and annuity products,we calculate these liabilities based on assumptions and estimates, including estimated premiums to be received over the assumed life of the policy, the timing of theevent covered by the insurance policy, the amount of benefits or claims to be paid and the investment returns on the investments we make with the premiums wereceive. We establish liabilities for claims and benefits based on assumptions and estimates of losses and liabilities incurred. Amounts for actuarial liabilities arecomputed and reported on the consolidated financial statements in conformity with GAAP. For more details on policyholder liabilities see “Management’sDiscussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — Liability for Future Policy Benefits”and “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Policyholder Liabilities.”

Pursuant to applicable insurance laws and regulations, MetLife, Inc.’s insurance subsidiaries, including affiliated captive reinsurers, establish statutoryreserves, reported as liabilities, to meet their obligations on their respective policies. These statutory reserves are established in amounts sufficient to meet policyand contract obligations, when taken together with expected future premiums and interest at assumed rates. Statutory reserves and actuarial liabilities for futurepolicy benefits generally differ based on accounting guidance.

U.S. state insurance laws and regulations require certain MetLife entities to submit to superintendents of insurance, with each annual report, an opinion andmemorandum of a qualified actuary that the statutory reserves and related actuarial amounts recorded in support of specified policies and contracts, and the assetssupporting such statutory reserves and related actuarial amounts, make adequate provision for their statutory liabilities with respect to these obligations.

Insurance regulators in many of the non-U.S. jurisdictions in which we operate require certain MetLife entities to prepare a sufficiency analysis of the reservespresented in the locally required regulatory financial statements, and to submit that analysis to the regulatory authorities. See “— Regulation — InsuranceRegulation — Policy and Contract Reserve Adequacy Analysis.”

Underwriting and Pricing

Our Global Risk Management Department (“GRM”) contains a dedicated unit, the primary responsibility of which is the development of product pricingstandards and independent pricing and underwriting oversight for MetLife’s insurance businesses. Further important controls around management of underwritingand pricing processes include regular experience studies to monitor assumptions against expectations, formal new product approval processes, periodic updates toproduct profitability studies and the use of reinsurance to manage our exposures, as appropriate. See “— Reinsurance Activity.”

Underwriting

Underwriting generally involves an evaluation of applications by a professional staff of underwriters and actuaries, who determine the type and the amount ofinsurance risk that we are willing to accept. We employ detailed underwriting policies, guidelines and procedures designed to assist the underwriter to properlyassess and quantify such risks before issuing policies to qualified applicants or groups.

Insurance underwriting considers not only an applicant’s medical history, but also other factors such as financial profile, foreign travel, vocations and alcohol,drug and tobacco use. Group underwriting generally evaluates the risk characteristics of each prospective insured group, although with certain voluntary productsand for certain coverages, members of a group may be underwritten on an individual basis. We generally perform our own underwriting; however, certain policiesare reviewed by intermediaries under guidelines established by us. Generally, we are not obligated to accept any risk or group of risks from, or to issue a policy orgroup of policies to, any employer or intermediary. Requests for coverage are reviewed on their merits and a policy is not issued unless the particular risk or grouphas been examined and approved in accordance with our underwriting guidelines.

The underwriting conducted by our remote underwriting offices and intermediaries, as well as our corporate underwriting office, is subject to periodic qualityassurance reviews to maintain high standards of underwriting and consistency. Such offices are also subject to periodic external audits by reinsurers with whom wedo business.

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We have established oversight of the underwriting process that facilitates quality sales and serves the needs of our customers, while supporting our financialstrength and business objectives. Our goal is to achieve the underwriting, mortality and morbidity levels reflected in the assumptions in our product pricing. This isaccomplished by determining and establishing underwriting policies, guidelines, philosophies and strategies that are competitive and suitable for the customer, theagent and us.

For our Property & Casualty business, our underwriting function has six principal aspects: evaluating potential voluntary and worksite employer accounts andindependent agencies; establishing guidelines for the binding of risks; reviewing coverage bound by agents; underwriting potential insureds, on a case by casebasis, presented by agents outside the scope of their binding authority; pursuing information necessary in certain cases to enable issuance of a policy within ourguidelines; and ensuring that renewal policies continue to be written at rates commensurate with risk. Subject to very few exceptions, agents in each of thedistribution channels have binding authority for risks which fall within our published underwriting guidelines. Risks falling outside the underwriting guidelinesmay be submitted for approval to the underwriting department; alternatively, agents in such a situation may call the underwriting department to obtainauthorization to bind the risk themselves. In most states, we generally have the right within a specified period (usually the first 60 days) to cancel any policy.

We continually review our underwriting guidelines in light of applicable regulations and to ensure that our policies remain competitive and supportive of ourmarketing strategies and profitability goals.

Pricing

Product pricing reflects our pricing standards, which are consistent for our global businesses. GRM, as well as regional finance and product teams, areresponsible for pricing and oversight for all of our insurance businesses. Product pricing is based on the expected payout of benefits calculated through the use ofassumptions for mortality, morbidity, expenses, persistency and investment returns, as well as certain macroeconomic factors, such as inflation. Investment-oriented products are priced based on various factors, which may include investment returns, expenses, persistency and optionality and possible variability ofresults. For certain products, pricing may include prospective and retrospective experience rating features. Prospective experience rating involves the evaluation ofpast experience for the purpose of determining future premium rates and we bear all prior year gains and losses. Retrospective experience rating also involves theevaluation of past experience for the purpose of determining the actual cost of providing insurance for the customer; however, the contract includes certain featuresthat allow us to recoup certain losses or distribute certain gains back to the policyholder based on actual prior years’ experience.

Rates for group benefit products are based on anticipated earnings and expenses for the book of business being underwritten. Renewals are generallyreevaluated annually or biannually and are re-priced to reflect actual experience on such products. Products offered by RIS are priced on demand. Pricing reflectsexpected investment returns, as well as mortality, longevity and expense assumptions appropriate for each product. This business is generally nonparticipating andilliquid, as policyholders have few or no options or contractual rights to cash values.

Rates for individual life insurance products are highly regulated and generally must be approved by the regulators of the jurisdictions in which the product issold. Generally, such products are renewed annually and may include pricing terms that are guaranteed for a certain period of time. Individual disability incomeproducts are based on anticipated results for the occupation being underwritten. Fixed and variable annuity products are also highly regulated and approved by therespective regulators. Such products generally include penalties for early withdrawals and policyholder benefit elections to tailor the form of the product’s benefitsto the needs of the opting policyholder. We periodically reevaluate the costs associated with such options and will periodically adjust pricing levels on ourguarantees. Further, from time to time, we may also reevaluate the type and level of guarantee features currently being offered.

For our Property & Casualty business, our ability to set and change rates is subject to regulatory oversight. Rates for our major lines of property and casualtyinsurance are based on our proprietary database, rather than relying on rating bureaus. We determine prices in part from a number of variables specific to each risk.The pricing of personal lines insurance products takes into account, among other things, the expected frequency and severity of losses, the costs of providingcoverage (including the costs of acquiring policyholders and administering policy benefits and other administrative and overhead costs such as reinsurance),competitive factors and profit considerations. The major pricing variables for personal lines insurance include characteristics of the insured property, such as age,make and model or construction type, as well as characteristics of the insureds, such as driving record and loss experience, and the insured’s personal financialmanagement. As a condition of our license to do business in each state, we, like all other personal lines insurers, are required to write or share the cost of privatepassenger automobile and homeowners insurance for higher risk individuals who would otherwise be unable to obtain such insurance. This “involuntary” market,also called the “shared market,” is governed by the applicable laws and regulations of each state, and policies written in this market are generally written at rateshigher than standard rates and typically afford less coverage.

We continually review our pricing guidelines in light of applicable regulations and to ensure that our policies remain competitive and supportive of ourmarketing strategies and profitability goals.

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Reinsurance Activity

We enter into reinsurance agreements primarily as a purchaser of reinsurance for our various insurance products and also as a provider of reinsurance for someinsurance products issued by third parties. We participate in reinsurance activities in order to limit losses, minimize exposure to significant risks, and provideadditional capacity for future growth. We enter into various agreements with reinsurers that cover individual risks, group risks or defined blocks of business,primarily on a coinsurance, yearly renewable term, excess or catastrophe excess basis. These reinsurance agreements spread risk and minimize the effect of losses.The extent of each risk retained by us depends on our evaluation of the specific risk, subject, in certain circumstances, to maximum retention limits based on thecharacteristics of coverages. We also cede first dollar mortality risk under certain contracts. In addition to reinsuring mortality risk, we reinsure other risks, as wellas specific coverages. We obtain reinsurance for capital requirement purposes and also when the economic impact of the reinsurance agreement makes itappropriate to do so.

Under the terms of the reinsurance agreements, the reinsurer agrees to reimburse us for the ceded amount in the event a claim is paid. Cessions underreinsurance agreements do not discharge our obligations as the primary insurer. In the event that reinsurers do not meet their obligations under the terms of thereinsurance agreements, reinsurance recoverable balances could become uncollectible.

We reinsure our business through a diversified group of well-capitalized, highly rated reinsurers. We analyze recent trends in arbitration and litigationoutcomes in disputes, if any, with our reinsurers. We monitor ratings and evaluate the financial strength of our reinsurers by analyzing their financial statements. Inaddition, the reinsurance recoverable balance due from each reinsurer is evaluated as part of the overall monitoring process. Recoverability of reinsurancerecoverable balances is evaluated based on these analyses. We generally secure large reinsurance recoverable balances with various forms of collateral, includingsecured trusts, funds withheld accounts and irrevocable letters of credit. Additionally, we enter into reinsurance agreements for risk and capital managementpurposes with several affiliated captive reinsurers. Captive reinsurers are affiliated insurance companies licensed under specific provisions of insurance law of theirrespective jurisdictions, such as a Special Purpose Financial Captive law adopted by several states including Vermont and South Carolina, and have a very narrowbusiness plan that specifically restricts the majority or all of their activity to reinsuring business from their affiliates. See “Management’s Discussion and Analysisof Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company — Capital — Affiliated Captive ReinsuranceTransactions.”

U.S.

For our Group Benefits business, we generally retain most of the risk and only cede particular risk on certain client arrangements. The majority of ourreinsurance activity within this business relates to the following client agreements:

• Employer sponsored captive programs: through these programs, employers buy a group life insurance policy with the condition that a portion of the risk isreinsured back to a captive insurer sponsored by the client.

• Risk-sharing agreements: through these programs, clients require that we reinsure a portion of the risk back to third parties, such as minority-ownedreinsurers.

• Multinational pooling: through these agreements, employers buy many group insurance policies which are aggregated in a single insurer via reinsurance.

The risks ceded under these agreements are generally quota shares of group life and disability policies. The cessions vary from 50% to 90% of all the risks ofthe policies.

For our Property & Casualty business, we purchase reinsurance to manage our exposure to large losses (primarily catastrophe losses) and to protect statutorysurplus. We cede losses and premiums based upon the exposure of the policies subject to reinsurance. To manage exposure to large property and casualty losses,we purchase property catastrophe, casualty and property per risk excess of loss reinsurance protection.

For our RIS business, we have periodically engaged in reinsurance activities on an opportunistic basis. There were no such transactions during the periodspresented.

Asia,LatinAmericaandEMEA

For certain of our life insurance products, we currently reinsure risks in excess of $5 million to external reinsurers on a yearly renewable term basis.

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For selected large corporate clients, we reinsure group employee benefits or credit insurance business with various client-affiliated reinsurance companies,covering policies issued to the employees or customers of the clients. Additionally, we cede and assume risk with other insurance companies when either companyrequires a business partner with the appropriate local licensing to issue certain types of policies in certain jurisdictions. In these cases, the assuming companytypically underwrites the risks, develops the products and assumes most or all of the risk.

We also have reinsurance agreements in-force that reinsure a portion of the living and death benefit guarantees issued in connection with variable annuityproducts. Under these agreements, we pay reinsurance fees associated with the guarantees collected from policyholders, and receive reimbursement for benefitspaid or accrued in excess of account values, subject to certain limitations.

We may also reinsure certain risks with external reinsurers depending upon the nature of the risk and local regulatory requirements.

MetLifeHoldings

For our life products, we have historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis. In addition toreinsuring mortality risk as described above, we reinsure other risks, as well as specific coverages. Placement of reinsurance is done primarily on an automaticbasis and also on a facultative basis for risks with specified characteristics. We also assume portions of the risk associated with certain whole life policies issued bya former affiliate and reinsure certain term life policies and universal life policies with secondary death benefit guarantees to such former affiliate.

For our other products, we have a reinsurance agreement in-force to reinsure the living and death benefit guarantees issued in connection with certain variableannuity guarantees from our former operating joint venture in Japan. Under this agreement, we receive reinsurance fees associated with the guarantees collectedfrom policyholders, and provide reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations.

CatastropheCoverage

We have exposure to catastrophes which could contribute to significant fluctuations in our results of operations. For the U.S. and EMEA, we purchasecatastrophe coverage to reinsure risks issued within territories that we believe are subject to the greatest catastrophic risks. For our other segments, we use excessof retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposure to larger risks. Excess of retention reinsuranceagreements provide for a portion of a risk to remain with the direct writing company and quota share reinsurance agreements provide for the direct writingcompany to transfer a fixed percentage of all risks of a class of policies.

ReinsuranceRecoverables

For information regarding ceded reinsurance recoverable balances, included in premiums, reinsurance and other receivables on the consolidated balancesheets, see Note 6 of the Notes to the Consolidated Financial Statements.

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Regulation

Overview

In the United States, our life insurance companies are regulated primarily at the state level by state insurance regulators, with some products and services alsosubject to federal regulation. MetLife, Inc. and its U.S. insurance subsidiaries are subject to regulation under the insurance holding company laws of various U.S.jurisdictions. Furthermore, some of MetLife’s operations, products and services are subject to consumer protection laws, securities, broker-dealer and investmentadviser regulations, environmental and unclaimed property laws and regulations, and to the Employee Retirement Income Security Act of 1974 (“ERISA”).

Outside of the United States, our insurance operations are principally regulated by insurance regulatory authorities in the jurisdictions in which they arelocated or operate. In addition, our investment and pension companies outside of the U.S. are subject to oversight by the relevant securities, pension and otherauthorities of the jurisdictions in which the companies operate. Our non-U.S. insurance businesses are also subject to current and developing solvency regimeswhich impose various capital and other requirements. Additionally, we may be subject in the future to enhanced capital standards, supervision and additionalrequirements of other international and global regulatory initiatives.

We expect the scope and extent of regulation and regulatory oversight generally to continue to increase. The regulatory environment and changes in laws inthe jurisdictions in which we operate could have a material adverse effect on our results of operations.

InsuranceRegulation

Insurance regulation generally aims at supervising and regulating insurers, with the goal of protecting policyholders and ensuring that insurance companiesremain solvent. Insurance regulators have increasingly sought information about the potential impact of activities in holding company systems as a whole, andsome jurisdictions have adopted laws and regulations enhancing “group-wide” supervision, including as developed through the National Association of InsuranceCommissioners’ (“NAIC”) Solvency Modernization Initiative. See “— NAIC” for information regarding group-wide supervision.

Each of MetLife’s insurance subsidiaries is licensed and regulated in each jurisdiction where it conducts insurance business. The extent of such regulationvaries, but most jurisdictions have laws and regulations governing the financial aspects and business conduct of insurers. Insurance laws, including state laws in theUnited States, grant insurance regulatory authorities broad administrative powers with respect to, among other things:

• licensing companies and agents to transact business;

• calculating the value of assets to determine compliance with statutory requirements;

• mandating certain insurance benefits;

• regulating certain premium rates;

• reviewing and approving certain policy forms, including required policyholder disclosures;

• regulating unfair trade and claims practices, including through the imposition of restrictions on marketing and sales practices, distribution arrangementsand payment of inducements, and identifying and paying to the states or local authorities benefits and other property that is not claimed by the owners;

• regulating advertising;

• protecting privacy;

• establishing statutory capital and reserve requirements and solvency standards;

• specifying the conditions under which a ceding company can take credit for reinsurance in its statutory financial statements (i.e., reduce its reserves by theamount of reserves ceded to a reinsurer);

• fixing maximum interest rates on insurance policy loans and minimum rates for guaranteed crediting rates on life insurance policies and annuity contracts;

• adopting and enforcing suitability standards with respect to the sale of annuities and other insurance products;

• approving changes in control of insurance companies;

• restricting the payment of dividends and other transactions between affiliates; and

• regulating the types and amounts of investments.

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Each insurance subsidiary is required to file reports, generally including detailed annual financial statements, with insurance regulatory authorities in each ofthe jurisdictions in which it does business, and its operations and accounts are subject to periodic examination by such authorities. These subsidiaries must also file,and in many jurisdictions and in some lines of insurance obtain regulatory approval for, rules, rates and forms relating to the insurance written in the jurisdictions inwhich they operate.

Insurance and securities regulatory authorities and other law enforcement agencies and attorneys general from time to time make inquiries regardingcompliance by MetLife, Inc. and its insurance subsidiaries with insurance, securities and other laws and regulations regarding the conduct of our insurance andsecurities businesses. We cooperate with such inquiries and take corrective action when warranted. See Note 20 of the Notes to the Consolidated FinancialStatements.

U.S.FederalInitiatives

Although the insurance business in the United States is primarily regulated by the states, federal initiatives often have an impact on our business in a varietyof ways. From time to time, federal measures are proposed that may significantly affect the insurance business. Impacted areas include financial servicesregulation, securities regulation, derivatives regulation, pension regulation, health care regulation, privacy, tort reform legislation and taxation. In addition,various forms of direct and indirect federal regulation of insurance have been proposed from time to time, including proposals for the establishment of anoptional federal charter for insurance companies. See “Risk Factors — Regulatory and Legal Risks — Our Businesses Are Highly Regulated, and Changes inLaws, Regulation and in Supervisory and Enforcement Policies May Reduce Our Profitability, Limit Our Growth, or Otherwise Adversely Affect Our Business,Results of Operations and Financial Condition.”

The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) effected the most far-reaching overhaul of financial regulation in theUnited States in decades, including the creation of the Financial Stability Oversight Council (“FSOC”), which was given the authority to designate certainfinancial companies as non-bank systemically important financial institutions (“non-bank SIFI”) subject to supervision by the Board of Governors of the FederalReserve System (“Federal Reserve Board”) and the Federal Reserve Bank of New York (collectively with the Federal Reserve Board, the “Federal Reserve”).We are not able to predict with certainty whether or what changes may be made to Dodd-Frank in the future or whether such changes would have a materialeffect on our business operations. As such, we cannot currently identify all of the risks or opportunities, if any, that may be posed to our businesses as a result ofchanges to, or legislative replacements for, Dodd-Frank. See “Risk Factors — Regulatory and Legal Risks — Our Businesses Are Highly Regulated, andChanges in Laws, Regulation and in Supervisory and Enforcement Policies May Reduce Our Profitability, Limit Our Growth, or Otherwise Adversely AffectOur Business, Results of Operations and Financial Condition.”

Dodd-Frank also established the Federal Insurance Office within the Department of the Treasury, which has the authority to participate in the negotiations ofinternational insurance agreements with foreign regulators for the U.S., as well as to collect information about the insurance industry and recommend prudentialstandards. While not having a general supervisory or regulatory authority over the business of insurance, the director of this office performs various functionswith respect to insurance, including serving as a non-voting member of the FSOC and making recommendations to the FSOC regarding insurers to be designatedfor more stringent regulation.

Under the provisions of Dodd-Frank relating to the resolution or liquidation of certain types of financial institutions, if MetLife, Inc. or another financialinstitution were to become insolvent or were in danger of defaulting on its obligations, it could be compelled to undergo liquidation with the Federal DepositInsurance Corporation (“FDIC”) as receiver. For this new regime to be applicable, a number of determinations would have to be made, including that a defaultby the affected company would have serious adverse effects on financial stability in the U.S. While under this new regime an insurance company would beresolved in accordance with state insurance law, if the FDIC were to be appointed as the receiver for another type of company (including an insurance holdingcompany such as MetLife, Inc.), the liquidation of that company would occur under the provisions of the new liquidation authority, and not under the BankruptcyCode, which ordinarily governs liquidations. The FDIC’s purpose under the liquidation regime is to mitigate the systemic risks the institution’s failure poses,which is different from that of a bankruptcy trustee under the Bankruptcy Code. In such a liquidation, the holders of such company’s debt could in certainrespects be treated differently than under the Bankruptcy Code. As required by Dodd-Frank, the FDIC has established rules relating to the priority of creditors’claims and the potentially dissimilar treatment of similarly situated creditors. These provisions could apply to some financial institutions whose outstanding debtsecurities we hold in our investment portfolios.

Dodd-Frank also includes provisions that may impact the investments and investment activities of MetLife, Inc. and its subsidiaries, including the federalregulation of such activities. Until the various final regulations are promulgated pursuant to Dodd-Frank, and perhaps for some time thereafter, the full impact ofDodd-Frank on such activities will remain unclear.

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HealthCareRegulation

The Patient Protection and Affordable Care Act (“PPACA”), signed into law on March 23, 2010, and The Health Care and Education Reconciliation Act of2010, signed into law on March 30, 2010 (together, the “Affordable Care Act”), impose obligations on MetLife as an enterprise, and as a provider of non-medical health insurance benefits and a purchaser of certain of these products. In 2014, we became subject to an excise tax called the “health insurer fee,” thecost of which is primarily passed on to group purchasers of certain of our dental and vision insurance products. The health insurer fee was suspended pursuant tolegislation during the 2017 calendar year but was in force for the 2018 calendar year. On January 22, 2018, the health insurer fee was suspended for the 2019calendar year. The Affordable Care Act and its related regulations have resulted in increased and unpredictable costs to provide certain products and may haveadditional adverse effects. It has also harmed our competitive position, as the Affordable Care Act has a disparate impact on our products compared to productsoffered by our not-for-profit competitors. See “Risk Factors — Regulatory and Legal Risks — Our Businesses Are Highly Regulated, and Changes in Laws,Regulation and in Supervisory and Enforcement Policies May Reduce Our Profitability, Limit Our Growth, or Otherwise Adversely Affect Our Business, Resultsof Operations and Financial Condition.”

On July 14, 2014, the District of Columbia (“DC”) adopted a law that imposes an assessment on health insurers doing business in DC, including those thatissue non-medical health-related products that are not subject to regulation under the Affordable Care Act. MetLife and other similarly impacted insurers arecurrently funding litigation sponsored by the American Council of Life Insurers (ACLI) to challenge the legality of DC’s assessment. While the financial impactto the Company of DC’s action will be minimal, if other states decide to adopt this model, there could be an impact on product pricing and sales. Additionally,Connecticut has levied, and Maryland has proposed legislation to levy, assessments in connection with their healthcare exchanges, and other states may alsoconsider levying assessments on both medical and non-medical health insurers to fund their healthcare exchanges.

The Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 also includes certain provisions for defined benefit pensionplan funding relief. As part of our RIS business, we offer general account and separate account group annuity products that enable a plan sponsor to transferthese risks, often in connection with the termination of defined benefit pension plans. These provisions may impact the likelihood or timing of corporate plansponsors terminating their plans or engaging in transactions to transfer pension obligations to an insurance company. Such rules could thus affect our mix ofbusiness, resulting in fewer pension risk transfers and more non-guaranteed funding products.

GuarantyAssociationsandSimilarArrangements

Many jurisdictions in which our insurance subsidiaries are admitted to transact business require life, health and property and casualty insurers doingbusiness within the jurisdiction to participate in guaranty associations or similar arrangements in order to pay certain contractual insurance benefits owedpursuant to insurance policies issued by impaired, insolvent or failed insurers, or those that may become impaired, insolvent or fail. We have establishedliabilities for guaranty fund assessments that we consider adequate. See Note 20 of the Notes to the Consolidated Financial Statements for additional informationon the guaranty association assessments.

InsuranceRegulatoryExaminationsandOtherActivities

As part of their regulatory oversight process, U.S. state insurance departments conduct periodic detailed examinations of the books, records, accounts, andbusiness practices of insurers domiciled in their states. State insurance departments also have the authority to conduct examinations of non-domiciliary insurersthat are licensed in their states. Except as otherwise disclosed below regarding the consent order and in Note 20 of the Notes to the Consolidated FinancialStatements, during the years ended December 31, 2018, 2017 and 2016, MetLife did not receive any material adverse findings resulting from state insurancedepartment examinations of its insurance subsidiaries. On October 15, 2018, MetLife received notice that insurance regulators for the states of Pennsylvania,California, Florida, North Dakota and New Hampshire have scheduled a multistate market conduct re-examination of MetLife and its affiliates relating tocompliance with the Regulatory Settlement Agreement on unclaimed proceeds. On January 28, 2019, MetLife entered into a consent order with the New YorkState Department of Financial Services (“NYDFS”) relating to the open quinquennial exam and agreed to pay a $19.75 million fine, an additional $1.5 million incustomer restitution and submit remediation plans for approval within 60 days.

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Regulatory authorities in a small number of states, the Financial Industry Regulatory Authority (“FINRA”) and, occasionally, the U.S. Securities andExchange Commission (the “SEC”) have had investigations or inquiries relating to sales of individual life insurance policies or annuities or other products issuedby MLIC, General American Life Insurance Company (“GALIC”), which merged with and into Metropolitan Tower Life Insurance Company (“MTL”) on April30, 2018, and MetLife Securities, Inc. (“MSI”), a broker-dealer which was part of the U.S. Retail Advisor Force Divestiture (as defined below). Theseinvestigations have focused on the conduct of particular financial services representatives, the sale of unregistered or unsuitable products, the misuse of clientassets, and sales and replacements of annuities and certain riders on such annuities. Over the past several years, these and a number of investigations by otherregulatory authorities were resolved for monetary payments and certain other relief, including restitution payments. We may continue to receive, and mayresolve, further investigations and actions on these matters in a similar manner.

Insurance standard-setting and regulatory support organizations, including the NAIC, encourage insurance supervisors to establish Supervisory Colleges forU.S.-based insurance groups with international operations to facilitate cooperation and coordination among the insurance groups’ supervisors and to enhance themember regulators’ understanding of an insurance group’s risk profile. MetLife’s regulators, such as the NYDFS, regularly chair Supervisory College meetingsthat are attended by MetLife’s key U.S. and non-U.S. regulators.

Regulators supervise our non-U.S. insurance businesses using techniques such as periodic examinations of insurance company books and records, financialreporting requirements, market conduct examinations and policy filing requirements. The European Insurance and Occupational Pensions Authority (“EIOPA”),along with European legislation, requires European regulators, such as the Central Bank of Ireland (“CBI”), to establish Supervisory Colleges for EuropeanEconomic Area (“EEA”)-based insurance groups with significant European operations, including MetLife, to facilitate cooperation and coordination among theinsurance groups’ European supervisors and to enhance the member state regulators’ understanding of an insurance group’s risk profile.

On July 13, 2018, the Chilean insurance regulator requested information from us and other companies regarding sales practices related to our annuitiesbusiness in Chile. We have provided the requested information. In addition, on February 1, 2017, the National Economic Prosecutor of Chile initiated aninvestigation of insurance companies in the Chilean market, including us, regarding fair competition in the insurance market, particularly bidding processes formortgage insurance. We are cooperating with the investigation.

In addition, claims payment practices by insurance companies have received increased scrutiny from regulators. See Note 20 of the Notes to theConsolidated Financial Statements for further information regarding retained asset accounts and unclaimed property inquiries, including pension benefits.

PolicyandContractReserveAdequacyAnalysis

Annually, our U.S. insurance subsidiaries, including affiliated captive reinsurers, are required to conduct an analysis of the adequacy of all statutoryreserves. In each case, a qualified actuary must submit an opinion that states that the statutory reserves make adequate provision, according to accepted actuarialstandards of practice, for the anticipated cash flows required by the contractual obligations and related expenses of the U.S. insurance subsidiary. The adequacyof the statutory reserves is considered in light of the assets held by the insurer with respect to such reserves and related actuarial items including, but not limitedto, the investment earnings on such assets, and the consideration anticipated to be received and retained under the related policies and contracts. The Companymay increase reserves in order to submit an opinion without qualification. Since the inception of this requirement, our U.S. insurance subsidiaries that arerequired by their states of domicile to provide these opinions have provided such opinions without qualifications.

Many of our non-U.S. insurance operations are also required to conduct analyses of the adequacy of all statutory reserves. In most of those cases, a locallyqualified actuary must submit an analysis of the likelihood that the reserves make adequate provision for the associated contractual obligations and relatedexpenses of the insurer. Local regulatory and actuarial standards for this analysis vary widely.

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NAIC

The NAIC assists U.S. state insurance regulatory authorities in serving the public interest and achieving the insurance regulatory goals of its members, thestate insurance regulatory officials. State insurance regulators may act independently or adopt regulations proposed by the NAIC. State insurance regulators andthe NAIC regularly re-examine existing laws and regulations applicable to insurance companies and their products. Through the NAIC, state insurance regulatorsestablish standards and best practices, conduct peer reviews, and coordinate their regulatory oversight. The NAIC provides standardized insurance industryaccounting and reporting guidance through its Accounting Practices and Procedures Manual (the “Manual”), which states have largely adopted by regulation.However, statutory accounting principles continue to be established by individual state laws, regulations and permitted practices, which may differ from theManual. Changes to the Manual or modifications by the various state insurance departments may impact the statutory capital and surplus of MetLife, Inc.’s U.S.insurance subsidiaries.

U.S. state insurance holding company laws and regulations are generally based on the Model Holding Company Act and Regulation. These insuranceholding company laws and regulations vary from jurisdiction to jurisdiction, but generally require a controlled insurance company (i.e., insurers that aresubsidiaries of insurance holding companies) to register with state regulatory authorities and to file with those authorities certain reports, including informationconcerning its capital structure, ownership, financial condition, certain intercompany transactions and general business operations.

The Model Holding Company Act and Regulation include a requirement that the ultimate controlling person of a U.S. insurer file an annual enterprise riskreport with the lead state of the insurance holding company system identifying risks likely to have a material adverse effect upon the financial condition orliquidity of the insurer or its insurance holding company system as a whole. To date, all of the states where MetLife has domestic insurers have enacted a versionof the revised Model Holding Company Act, including the enterprise risk reporting requirement. The Model Holding Company Act also authorizes stateinsurance commissioners to act as global group-wide supervisors for internationally active insurance groups, as well as other insurers that choose to opt in for thegroup-wide supervision. The Model Holding Company Act creates a selection process for the group-wide supervisor, extends confidentiality protection tocommunications with the group-wide supervisor, and outlines the duties of the group-wide supervisor. To date, a number of jurisdictions have adopted laws andregulations enhancing group-wide supervision.

The NAIC has concluded its “Solvency Modernization Initiative,” which was designed to review the U.S. financial regulatory system and all aspects offinancial regulation affecting insurance companies. Though broad in scope, the NAIC’s Solvency Modernization Initiative focused on: (i) capital requirements;(ii) corporate governance and risk management; (iii) group supervision; (iv) statutory accounting and financial reporting; and (v) reinsurance. In furtherance ofthis initiative, the NAIC adopted the Corporate Governance Annual Disclosure Model Act and Regulation. The model act, which requires insurers to make anannual confidential filing regarding their corporate governance policies, has been adopted in twenty-seven states as of January 2019, including certain of ourinsurance subsidiaries’ domiciliary states. In addition, the NAIC adopted the Risk Management and Own Risk and Solvency Assessment Model Act (“ORSAModel Act”), which has been enacted by our insurance subsidiaries’ domiciliary states. The ORSA Model Act requires that insurers maintain a risk managementframework and conduct an internal own risk and solvency assessment of the insurer’s material risks in normal and stressed environments. The assessment mustbe documented in a confidential annual summary report, a copy of which must be made available to regulators as required or upon request. MetLife, Inc. hassubmitted on behalf of the enterprise an Own Risk and Solvency Assessment (“ORSA”) summary report to the NYDFS annually since this requirement becameeffective.

The NAIC has approved a new valuation manual containing a principle-based approach to the calculation of life insurance reserves. Principle-basedreserving is designed to better address reserving for products, including the current generation of products for which the current formulaic basis for reservedetermination does not work effectively. The principle-based approach became effective on January 1, 2017 in the states where it had been adopted, to befollowed by a three-year phase-in period (at the option of insurance companies on a product-by-product basis) for new business since it was enacted into law bythe required number of state legislatures. To date, principle-based reserving has been adopted by all of the states where our insurance subsidiaries aredomiciled. New York has enacted legislation which will allow principle-based reserving no later than January 1, 2020. New York’s implementing regulationestablishes that the reserving standard in New York will be consistent with the reserve standards, valuation methods and related requirements of the NAICValuation Manual (the “Valuation Manual”), while also authorizing the NYDFS to deviate from the Valuation Manual, by regulation, if it determines that analternative requirement would be in the best interest of the policyholders of New York.

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In 2015, the NAIC commenced an initiative to study variable annuity solvency regulations, with the goal of curtailing the use of variable annuity captives. Inconnection with this initiative, the NAIC engaged a third-party consultant to develop recommendations regarding reserve and capital requirements. Followingseveral public exposures of the consultant’s recommendations, the NAIC adopted a new variable annuity framework, which is designed to reduce the level andvolatility of the non-economic aspect of reserve and risk-based capital (“RBC”) requirements for variable annuity products. The NAIC is now preparingtechnical language to be included in various NAIC manuals and guidelines to implement the new framework. We cannot predict the impact of this framework onour business until such technical requirements of the framework are completed, and we cannot predict whether the NYDFS or other state insurance regulatorswill adopt standards different from the NAIC framework.

In August 2017, the NAIC released a paper on macro-prudential initiatives, in which they proposed potential enhancements in supervisory practices relatedto liquidity, recovery and resolution, capital stress testing and exposure concentrations. The NAIC has adopted extensive changes to Statutory Annual Statementreporting, effective for year-end 2019, which it believes will improve liquidity risk monitoring.

We currently utilize capital markets solutions to finance a portion of our statutory reserve requirements for several products, including, but not limited to,our level premium term life subject to the NAIC Model Regulation Valuation of Life Insurance Policies (commonly referred to as XXX), and universal andvariable life policies with secondary guarantees (“ULSG”) subject to NAIC Actuarial Guideline 38 (commonly referred to as AXXX), as well as MLIC’s closedblock. Future capacity for these statutory reserve funding structures in the marketplace is not guaranteed. In 2014, the NAIC approved a new regulatoryframework applicable to the use of captive insurers in connection with Regulation XXX and Guideline AXXX transactions. Among other things, the frameworkcalled for more disclosure of an insurer’s use of captives in its statutory financial statements, and narrows the types of assets permitted to back statutory reservesthat are required to support the insurer’s future obligations. In 2014, the NAIC implemented the framework through an actuarial guideline (“AG 48”), whichrequires the actuary of the ceding insurer that opines on the insurer’s reserves to issue a qualified opinion if the framework is not followed. The requirements ofAG 48 became effective as of January 1, 2015 in all states without any further action necessary by state legislatures or insurance regulators to implement them,and apply prospectively to new policies issued and new reinsurance transactions entered into on or after January 1, 2015. In late 2016, the NAIC adopted anupdate to AG 48 and a model regulation that contains the same substantive requirements as the updated AG 48. The states have started to adopt the modelregulation.

We cannot predict the capital and reserve impacts or compliance costs, if any, that may result from the above initiatives, or what impact these initiatives willhave on our business, financial condition or results of operations.

SurplusandCapital

Insurers are required to maintain their capital and surplus at or above minimum levels prescribed by the laws of their respective jurisdictions. Regulatorsgenerally have discretionary authority, in connection with the continued licensing of our insurance subsidiaries, to limit or prohibit an insurer’s sales topolicyholders if, in their judgment, the regulators determine that such insurer has not maintained the minimum surplus or capital or that the further transaction ofbusiness will be hazardous to policyholders.

State insurance statutes also typically place restrictions and limitations on the amount of dividends or other distributions payable by insurance companysubsidiaries to their parent companies, as well as on transactions between an insurer and its affiliates. Dividends in excess of prescribed limits and transactionsabove a specified size between an insurer and its affiliates require the approval of the insurance regulator in the insurer’s state of domicile. See “Management’sDiscussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — MetLife, Inc. — Liquidity and Capital Sources— Dividends from Subsidiaries.” See also “Dividend Restrictions” in Note 15 of the Notes to the Consolidated Financial Statements for further informationregarding such limitations.

Our operations in non-U.S. jurisdictions may also be subject to restrictions on dividends and other distributions. For example, a portion of the annualearnings of our Japan operations may be repatriated each year, and may further be distributed to MetLife, Inc. as a dividend. We may determine not to repatriateprofits from the Japan operations or to repatriate a reduced amount in order to maintain or improve the solvency margin of the Japan operations or for otherreasons. In addition, the Financial Services Agency (“FSA”) may limit or not permit profit repatriations or other transfers of funds to the U.S. if such transferswould be detrimental to the solvency or financial strength of our Japan operations or for other reasons.

For developments that could affect our ratio of free cash flow to adjusted earnings results, and thus our surplus and capital, see “Risk Factors,” as amendedor supplemented in our subsequently filed Quarterly Reports on Form 10-Q.

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Risk-Based Capital

Most of our U.S. insurance subsidiaries are subject to RBC requirements that were developed by the NAIC and adopted by their respective states ofdomicile. RBC is based on a formula calculated by applying factors to various asset, premium, claim, expense and statutory reserve items. The formula takesinto account the risk characteristics of the insurer and is calculated on an annual basis. The major categories of risk involved are asset risk, insurance risk,interest rate risk, market risk and business risk. The formula is used as an early warning regulatory tool to identify possible inadequately capitalized insurersfor purposes of initiating regulatory action, and not as a means to rank insurers generally. State insurance laws provide insurance regulators the authority torequire various actions by, or take various actions against, insurers whose total adjusted capital does not meet or exceed certain RBC levels. As of the date ofthe most recent annual statutory financial statements filed with insurance regulators, the total adjusted capital of each of our subsidiaries subject to theserequirements was in excess of each of those RBC levels. See “Statutory Equity and Income” in Note 15 of the Notes to the Consolidated Financial Statementsand “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company —Capital — Statutory Capital and Dividends.”

In December 2017, President Trump signed into law H.R.1, commonly referred to as the Tax Cuts and Jobs Act of 2017 (“U.S. Tax Reform”). Followingthe reduction in the federal corporate income tax rate pursuant to U.S. Tax Reform, the NAIC adopted revisions to certain factors used to calculate Life RBC,which is the denominator of the RBC ratio. These revisions to the NAIC’s Life RBC calculation have resulted in increases in RBC charges and reductions inthe RBC ratios of our insurance subsidiaries. The NAIC is also studying RBC revisions for bonds, real estate, and longevity risk, but it is premature to projectthe impact of any potential regulatory changes resulting from such proposals.

The NAIC is continuing to develop a group capital calculation tool using an RBC aggregation methodology for all entities within the insurance holdingcompany system, including non-U.S. entities. The goal is to provide U.S. regulators with a method to aggregate the available capital and the minimum capitalof each entity in a group in a way that applies to all groups regardless of their structure. The NAIC expects to conduct field testing in the first half of 2019. TheNAIC has stated that the calculation will be a regulatory tool and will not constitute a requirement or standard. Nonetheless, any new group capital calculationmethodology may incorporate existing RBC concepts. It is not possible to predict what impact any such regulatory tool may have on our business.

While not required by or filed with insurance regulators, we calculate internally defined combined RBC ratios, which are determined by dividing the sumof total adjusted capital for MetLife, Inc.’s principal U.S. insurance subsidiaries, excluding American Life Insurance Company (“American Life”), by the sumof company action level RBC for such subsidiaries. We calculate such combined RBC ratios based on NAIC capital and reserving requirements (“NAIC-Based Combined RBC Ratios”). The NAIC-Based Combined RBC Ratio was in excess of 380% at December 31, 2018 and in excess of 400% at December31, 2017. The changes due to U.S. Tax Reform discussed above were the primary driver of the reduction. With the exception of changes related to the NAIC’sprinciple-based reserving framework, discussed above under “— NAIC,” we are not aware of any upcoming NAIC adoptions or state insurance departmentregulation changes that would have a material impact on the NAIC-Based Combined RBC Ratios of our U.S. insurance subsidiaries.

Solvency Regimes

Our insurance business throughout the EEA is subject to the Solvency II Directive (2009/138/EC) and its implementing rules, which cover the capitaladequacy, risk management and regulatory reporting for insurers and reinsurers. Solvency II codifies and harmonizes the European Union (“EU”) insuranceregulation. Capital requirements are forward-looking and based on the risk profile of each individual insurance company in order to promote comparability,transparency and competitiveness. In line with the requirements, MetLife entities calculate and report their solvency capital requirement using a standardformula prescribed by the EU Directive and further regulation by the EIOPA.

Mexico adopted a reform of its Insurance Law in February 2013. In accordance with this reform, a Solvency II-type regulatory framework becameeffective on January 1, 2016, which instituted changes to reserve and capital requirements and corporate governance and fostered greater transparency. In linewith the requirements of the local Solvency II, insurance companies calculate and report their capital requirement using a standard formula designed by thelocal regulators (“CNSF”). In addition, as required, certain MetLife entities must submit annual ORSA reports to the CNSF on an ongoing basis.

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In Chile, the law implementing Solvency II-like regulation continues in the studies stage. The implementation date for the new solvency regime has notyet been set; however, it could be in force within four years after the final regulation is published. The Chilean insurance regulator had already issued tworesolutions in 2011, one for governance and the other for risk management and control framework requirements. MetLife Chile has already implementedgovernance changes and risk policies to comply with these resolutions. On March 31, 2016, the local regulator issued a final regulation that requires insurancecompanies to implement a risk appetite framework and produce an ORSA. The second such report was submitted to the local regulator in June 2018.

In July 2015, the Superintendence of Private Insurance, the Brazilian insurance regulator (“SUSEP”), issued a regulation establishing (i) a framework forminimum capital requirements based on risk and (ii) criteria for investment activities in insurance companies. In November 2015, SUSEP issued an additionalregulation requiring insurance companies operating in Brazil to adopt a formal risk management function by the end of 2016 and to implement a formalenterprise risk management framework in 2017. In December 2016, MetLife Brazil formalized the designation of a local Risk Manager in Brazil in compliancewith local regulation and in 2017 completed the implementation of governance structures and risk management framework components in accordance withlocal regulatory requirements.

Japanese law provides that insurers in Japan must maintain specified solvency standards for the protection of policyholders and to support the financialstrength of licensed insurers. As of December 31, 2018, the solvency margin ratio of our Japan operations was in excess of four times the 200% solvencymargin ratio that would require corrective action, as disclosed in our most recent regulatory filing in Japan. Most Japanese life insurers maintain a solvencymargin ratio well in excess of the legally mandated minimum. In addition, Japan is expected to introduce an economic value-based solvency regime within thenext few years.

In China, the business of our joint venture (as well as the industry) has been implementing China Risk Oriented Solvency System (“C-ROSS”), a risk-based solvency regime, which became effective on January 1, 2016. Like Solvency II, C-ROSS focuses on risk management and has three pillars (strengthenquantitative capital requirements, enhance qualitative supervision and establish a governance and market discipline process). In September 2017, the regulatorannounced a three-year plan aimed at improving C-ROSS rules in line with the changing market environment.

In Korea, the Financial Supervisory Service is planning to implement by 2022 a new solvency system mirroring the International Capital Standard butreflecting certain product portfolio and other features specific to the Korean market. Mark-to-market valuation is expected to be a key feature of the newsystem, which would generally increase capital requirements.

IAIS

The International Association of Insurance Supervisors (“IAIS”), an association of insurance supervisors and regulators and a member of the FinancialStability Board (“FSB”), an international entity established to coordinate, develop and promote regulatory, supervisory and other financial sector policies in theinterest of financial stability, is participating in the FSB’s initiative to identify and manage systemic risk globally. Beginning in 2013, the FSB annuallydesignated certain insurers as globally systemically important insurers (“G-SIIs”) using an assessment methodology developed and implemented by the IAIS. InNovember 2016, MetLife, Inc. and eight other firms were designated as G-SIIs. In November 2017, the FSB announced it would not publish a new list of G-SIIspending further consideration and recommended that the IAIS continue development of an activities-based approach (“ABA”) to assessing and managingpotential systemic risk in the insurance sector. In November 2018, the FSB decided not to designate any G-SIIs in 2018. The FSB explained that this decisionwas made in light of progress made by the IAIS to develop a holistic framework for sector-wide risk monitoring and management of systemic risk and policytools to deal with the build-up of risk within insurers. The FSB announcement coincided with the release of an IAIS consultative document on a HolisticFramework for the Assessment and Mitigation of Systemic Risk in the Insurance Sector. The FSB noted that it will reassess suspension of G-SII designations inNovember 2022 after implementation of the holistic framework and decide whether to permanently discontinue or re-establish the G-SII identification process.

Current standards remain as drafted for entity-based designation and call for additional requirements for G-SIIs, which include higher loss absorbency(“HLA”) requirements, and more intensive supervision, among other requirements. In February 2017, the IAIS confirmed that the risk-based global insurancecapital standard (“ICS”) will replace basic capital requirements as the basis for a revised HLA and that work on revisions is deferred until adoption of the ICS bythe IAIS in 2019. HLA implementation is to be delayed until 2022 for the 2020 group of G-SIIs. In November 2017, the IAIS announced an agreement regardingfurther development and implementation of the ICS, and the impact on timing of further development and implementation of HLA requirements is unclear.

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All IAIS proposals would need to be implemented at the consolidated group level by legislation or regulation in each applicable jurisdiction. As MetLife,Inc. is no longer a U.S. non-bank SIFI and none of its regulators have proposed implementing the G-SII or other capital requirements, the impact on MetLife,Inc. of such global proposals is uncertain.

InvestmentsRegulation

Each of our U.S. insurance subsidiaries is subject to state laws and regulations that require diversification of investment portfolios and limit the amount ofinvestments that an insurer may have in certain asset categories, such as below investment grade fixed income securities, real estate equity, other equityinvestments, and derivatives. Failure to comply with these laws and regulations would cause investments exceeding regulatory limitations to be treated as non-admitted assets for purposes of measuring surplus and, in some instances, would require divestiture of such non-qualifying investments. We believe that theinvestments made by each of MetLife, Inc.’s U.S. insurance subsidiaries complied, in all material respects, with such regulations at December 31, 2018. Inaddition, many of our non-U.S. insurance subsidiaries are subject to local investment laws and regulations.

As a global insurance company, we are also affected by the monetary policies of central banks around the world. Actions resulting from these policies,including with respect to interest rates, may have an impact on the pricing levels of risk-bearing investments, and may impact the income we earn on ourinvestments or the level of product sales. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments —Current Environment.”

NewYorkInsuranceRegulation210

Insurance Regulation 210 went into effect in New York on March 19, 2018. Insurance Regulation 210 establishes standards for the determination and anyreadjustment of non-guaranteed elements (“NGEs”) that may vary at the insurer's discretion for life insurance policies and annuity contracts delivered or issuedfor delivery in New York. Examples of NGEs include cost of insurance for universal life insurance policies, as well as interest crediting rates for annuities anduniversal life insurance policies. The regulation requires insurers to notify policyholders at least 60 days in advance of any change in NGEs that is adverse topolicyholders and, with respect to life insurance, to notify the NYDFS at least 120 days prior to any such changes. Additionally, the regulation requires insurersto file annually with NYDFS to inform the NYDFS of any changes adverse to policyholders made in the prior year. The regulation generally prohibits insurersfrom increasing profit margins for in-force policies or adjusting NGEs in order to recoup past losses.

CybersecurityandPrivacyRegulation

Pursuant to U.S. federal and state laws, and laws of other jurisdictions in which we operate, various government agencies have established rules protecting theprivacy and security of personal information. In addition, most U.S. states and a number of jurisdictions outside the United States have enacted laws, which varysignificantly from jurisdiction to jurisdiction, to safeguard the privacy and security of personal information. The area of cybersecurity has also come underincreased scrutiny by insurance and other regulators.

New York’s cybersecurity regulation for financial services institutions, including banking and insurance entities under its jurisdiction, requires these entities toestablish and maintain a cybersecurity program designed to protect consumers’ private data. The regulation specifically provides for: (i) controls relating to thegovernance framework for a cybersecurity program; (ii) risk-based minimum standards for technology systems for data protection; (iii) minimum standards forcyber breach responses, including notice to NYDFS of material events; and (iv) identification and documentation of material deficiencies, remediation plans andannual certifications of regulatory compliance to the NYDFS.

In addition, on October 24, 2017, the NAIC adopted the Insurance Data Security Model Law (the “Cybersecurity Model Law”), which establishes standardsfor data security and for the investigation of and notification of insurance commissioners of cybersecurity events involving unauthorized access to, or the misuseof, certain nonpublic information. To date, the Cybersecurity Model Law has only been adopted by South Carolina. As adopted by South Carolina, and if adoptedas state legislation elsewhere, the Cybersecurity Model Law would impose significant new regulatory burdens intended to protect the confidentiality, integrity andavailability of information systems. However, a drafting note in the Cybersecurity Model Law states that a licensee’s compliance with the New York cybersecurityregulation is intended to constitute compliance with the Cybersecurity Model Law.

The General Data Protection Regulation (“GDPR”), which is intended to establish uniform data privacy laws across the EU, became effective for all EUmember states on May 25, 2018. GDPR is extraterritorial in that it applies to EU entities, as well as entities not established in the EU that offer goods or services todata subjects in the EU or monitor consumer behavior that takes place in the EU. Fines may be imposed for non-compliance with the requirements of the GDPR.

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The California Consumer Privacy Act of 2018 (the “CCPA”) grants all California residents the right to know what information a business has collected fromthem and the sourcing and sharing of that information, as well as a right to have a business delete their personal information (with some exceptions). Its definitionof “personal information” is more expansive than those found in other privacy laws applicable to us in the United States. Failure to comply with the CCPA couldresult in regulatory fines, and the law grants a private right of action for any unauthorized disclosure of personal information as a result of failure to maintainreasonable security procedures. We expect that exceptions to the CCPA will apply to a significant portion of our business. The CCPA is expected to becomeoperational on January 1, 2020, but California’s Attorney General is expected to delay enforcement actions until six months after a final regulation is promulgatedor July 1, 2020, whichever is sooner.

ERISA,FiduciaryConsiderations,andOtherPensionandRetirementRegulation

We provide products and services to certain employee benefit plans that are subject to ERISA and the Internal Revenue Code of 1986, as amended (the“Code”). As such, our activities are subject to the restrictions imposed by ERISA and the Code, including the requirement under ERISA that fiduciaries mustperform their duties solely in the interests of ERISA plan participants and beneficiaries, and that fiduciaries may not cause a covered plan to engage in certainprohibited transactions. The applicable provisions of ERISA and the Code are subject to enforcement by the Department of Labor (“DOL”), the Internal RevenueService (“IRS”) and the Pension Benefit Guaranty Corporation.

The prohibited transaction rules of ERISA and the Code generally restrict the provision of investment advice to ERISA plans and participants and IndividualRetirement Accounts (“IRAs”) if the investment recommendation results in fees paid to an individual advisor, the firm that employs the advisor or their affiliatesthat vary according to the investment recommendation chosen, unless an exemption or exception is available. Similarly, without an exemption or exception,fiduciary advisors are prohibited from receiving compensation from third parties in connection with their advice. ERISA also affects certain of our in-forceinsurance policies and annuity contracts, as well as insurance policies and annuity contracts we may sell in the future.

The DOL issued regulations that largely were applicable in 2017 that expanded the definition of “investment advice” and required an advisor to meet animpartial or “best interests” standard, but the regulations were formally vacated by the U.S. Court of Appeals for the Fifth Circuit in 2018. The Court of Appealsdecision also vacated certain DOL amendments to prohibited transaction exemptions. The DOL has announced that it plans to issue revised fiduciary investmentadvice regulations in September 2019. At this time, we cannot predict what form those regulations may take or their potential impact on us.

Separately, on April 18, 2018, the SEC proposed and opened for public comment a package of the rule proposals and interpretations regarding Regulation BestInterest, which would require broker-dealers to act in the best interest of “retail” customers including participants in ERISA-covered plans and IRAs when makinga recommendation of any securities transaction or investment strategy involving securities. The comment period for these proposals has closed. We cannot predictthe timing of any final rules or interpretations.

On December 14, 2017, the DOL released its semiannual regulatory agenda, which proposed revisions to Form 5500, the form used for ERISA annualreporting, proposed jointly with the IRS and the Pension Benefit Guaranty Corporation in 2016. The revisions affect employee pension and welfare benefit plans,including our ERISA plans, and require audits of information, self-directed brokerage account disclosure and additional extensive disclosure. We cannot predict theeffect these proposals will have on our business, if enacted, or what other proposals may be made, what legislation may be introduced or enacted, or what impactany such legislation may have on our results of operations and financial condition.

In addition, the DOL has issued a number of regulations that increase the level of disclosure that must be provided to plan sponsors and participants. Theparticipant disclosure regulations and the regulations that require service providers to disclose fee and other information to plan sponsors took effect in 2012. InJohn Hancock Mutual Life Insurance Company v. Harris Trust and Savings Bank (1993), the U.S. Supreme Court held that certain assets in excess of amountsnecessary to satisfy guaranteed obligations under a participating group annuity general account contract are “plan assets.” Therefore, these assets are subject tocertain fiduciary obligations under ERISA, which requires fiduciaries to perform their duties solely in the interest of ERISA plan participants and beneficiaries. OnJanuary 5, 2000, the Secretary of Labor issued final regulations indicating, in cases where an insurer has issued a policy backed by the insurer’s general account toor for an employee benefit plan, the extent to which assets of the insurer constitute plan assets for purposes of ERISA and the Code. The regulations apply onlywith respect to a policy issued by an insurer on or before December 31, 1998 (“Transition Policy”). No person will generally be liable under ERISA or the Code forconduct occurring prior to July 5, 2001, where the basis of a claim is that insurance company general account assets constitute plan assets. An insurer issuing a newpolicy that is backed by its general account and is issued to or for an employee benefit plan after December 31, 1998 will generally be subject to fiduciaryobligations under ERISA, unless the policy is a guaranteed benefit policy.

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The regulations indicate the requirements that must be met so that assets supporting a Transition Policy will not be considered plan assets for purposes ofERISA and the Code. These requirements include detailed disclosures to be made to the employee benefits plan and the requirement that the insurer must permitthe policyholder to terminate the policy on 90 days’ notice and receive without penalty, at the policyholder’s option, either (i) the unallocated accumulated fundbalance (which may be subject to market value adjustment) or (ii) a book value payment of such amount in annual installments with interest. We have taken andcontinue to take steps designed to ensure compliance with these regulations.

Several other regulatory organizations have also proposed various “best interest” standards. The NAIC has been discussing proposed revisions to theSuitability in Annuity Transactions Model Regulation throughout 2018. The revisions are intended to elevate the standard of care in existing suitability standardsfor the sale of annuities and to make consumers aware of any material conflicts of interest. A further updated draft of the Suitability in Annuity Transactions ModelRegulation was exposed for public comment through mid-February 2019. The NAIC intends to finalize the revisions to the Suitability in Annuity TransactionsModel Regulation in 2019. In addition, on December 27, 2017, the NYDFS proposed initial revisions to Insurance Regulation 187, which not only incorporate the“best interest” standard but also would expand the scope of the regulation beyond annuity transactions to include sales of life insurance policies to consumers. OnJuly 22, 2018, the NYDFS issued the final version of revised Insurance Regulation 187, which takes effect on August 1, 2019.

On October 29, 2018, Chilean President Sebastien Piñera submitted to Congress a new pension reform bill. The bill would increase employer mandatorycontributions and affirm private pension fund administration. We are not able to predict with certainty whether such bill will be adopted and cannot currentlyidentify all of the risks or opportunities, if any, that may be posed to our business in Chile. We expect that the Congressional debate may last through most of 2019.

On January 1, 2018, new regulations went into effect in Korea that reduced commission on savings retirement products. These regulations have negativelyimpacted sales of savings retirement products across the Korean market, including for us.

ConsumerProtectionLaws

Numerous federal and state laws affect MetLife, Inc.’s earnings and activities, including federal and state consumer protection laws, and MetLife, Inc. may beimpacted by consumer protection laws in non-U.S. jurisdictions as well. As part of Dodd-Frank, Congress established the Consumer Financial Protection Bureau(“CFPB”) to supervise and regulate institutions that provide certain financial products and services to consumers. Although the consumer financial services subjectto the CFPB’s jurisdiction generally exclude insurance business of the kind in which we engage, the CFPB does have authority to regulate non-insurance consumerservices we provide.

In August 2013, MetLife Bank, National Association (“MetLife Bank”) merged with and into MetLife Home Loans LLC (“MLHL”), its former subsidiary,with MLHL as the surviving, non-bank entity. The sole purpose of MLHL is to wind-down the limited remaining activities and fulfill remaining obligations andduties of MetLife Bank, some of which subject MLHL to certain federal consumer financial protection laws and certain state laws.

DerivativesRegulation

Dodd-Frank includes a framework of regulation of the over-the-counter (“OTC”) derivatives markets which requires clearing of certain types of transactionscurrently traded OTC and which imposes additional costs, including reporting and margin requirements. Our costs of risk mitigation are increasing under Dodd-Frank. For example, Dodd-Frank imposes requirements to pledge variation and/or initial margin (i) for “OTC-cleared” transactions (OTC derivatives that arecleared and settled through central clearing counterparties), and (ii) for “OTC-bilateral” transactions (OTC derivatives that are bilateral contracts between twocounterparties); the margin requirements for OTC-cleared transactions and the variation margin requirements for OTC-bilateral derivatives are already in effect,while the initial margin requirements for OTC-bilateral transactions will likely be applicable to us in September 2020. These increased margin requirements,combined with increased capital charges for our counterparties and central clearinghouses with respect to non-cash collateral, will likely require increased holdingsof cash and highly liquid securities with lower yields causing a reduction in income and less favorable pricing for OTC-cleared and OTC-bilateral transactions.Centralized clearing of certain OTC derivatives exposes us to the risk of a default by a clearing member or clearinghouse with respect to our cleared derivativetransactions. We use derivatives to mitigate a wide range of risks in connection with our businesses, including the impact of increased benefit exposures fromcertain of our annuity products that offer guaranteed benefits. We have always been subject to the risk that hedging and other management procedures might proveineffective in reducing the risks to which insurance policies expose us or that unanticipated policyholder behavior or mortality, combined with adverse marketevents, could produce economic losses beyond the scope of the risk management techniques employed. Any such losses could be increased by higher costs ofwriting derivatives (including customized derivatives) and the reduced availability of customized derivatives that might result from the implementation of Dodd-Frank and comparable international derivatives regulations.

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Dodd-Frank also expanded the definition of “swap” and mandated the SEC and U.S. Commodity Futures Trading Commission (“CFTC”) to study whether“stable value contracts” should be treated as swaps. Pursuant to the new definition and the SEC’s and CFTC’s interpretive regulations, products offered by ourinsurance subsidiaries other than stable value contracts might also be treated as swaps, even though we believe otherwise. Should such products become regulatedas swaps, we cannot predict how the rules would be applied to them or the effect on such products’ profitability or attractiveness to our clients. Federal bankingregulators have recently adopted new rules that will apply to certain qualified financial contracts, including many derivatives contracts, securities lendingagreements and repurchase agreements, with certain banking institutions and certain of their affiliates. These new rules, which went into effect on January 1, 2019,will generally require the banking institutions and their applicable affiliates to include contractual provisions in their qualified financial contracts that limit or delaycertain rights of their counterparties including counterparties’ default rights (such as the right to terminate the contracts or foreclose on collateral) and restrictionson assignments and transfers of credit enhancements (such as guarantees) arising in connection with the banking institution or an applicable affiliate becomingsubject to a bankruptcy, insolvency, resolution or similar proceeding. To the extent that any of the derivatives, securities lending agreements or repurchaseagreements that we enter into are subject to these new rules, it could limit our recovery in the event of a default and increase our counterparty risk.

The amount of collateral we are required to pledge and the payments we are required to make under our derivatives transactions are expected to increase as aresult of the requirement to pledge initial margin for OTC-cleared transactions and for OTC-bilateral transactions entered into after the phase-in period, which willlikely be applicable to us in September 2020 as a result of adoption by the Office of the Comptroller of the Currency (“OCC”), the Federal Reserve Board, theFDIC, the Farm Credit Administration and the Federal Housing Finance Agency (collectively, the “Prudential Regulators”) and the CFTC of final marginrequirements for non-centrally cleared derivatives.

Securities,Broker-DealerandInvestmentAdviserRegulation

U.S. federal and state securities laws and regulations apply to insurance products that are also “securities,” including variable annuity contracts and variablelife insurance policies, as well as certain fixed interest rate or index-linked contracts with features that require them to be registered as securities (such as“registered fixed contracts”) or sold through private placement issuances. As a result, some of MetLife, Inc.’s subsidiaries and their activities in offering and sellingvariable insurance contracts and policies are subject to extensive regulation under these securities laws.

Federal and state securities laws and regulations generally grant regulatory agencies broad rulemaking and enforcement powers, including the power to adoptnew rules impacting new or existing products, regulate the issuance, sale and distribution of our products and limit or restrict the conduct of business for failure tocomply with such laws and regulations. In some non-U.S. jurisdictions, some of our insurance products are considered “securities” under local law, and we may besubject to local securities regulations and oversight by local securities regulators.

Some of our subsidiaries and their activities in offering and selling variable insurance products and certain fixed interest rate or index-linked contracts aresubject to extensive regulation under the federal securities laws and regulations administered by the SEC. These subsidiaries issue variable annuity contracts andvariable life insurance policies through separate accounts that are registered with the SEC as investment companies under the Investment Company Act of 1940(the “Investment Company Act”) or are exempt from registration under the Investment Company Act. Such separate accounts are generally divided into sub-accounts, each of which invests in an underlying mutual fund which is itself a registered investment company under the Investment Company Act. In addition, thevariable annuity contracts and variable life insurance policies associated with these registered separate accounts are registered with the SEC under the SecuritiesAct of 1933 (the “Securities Act”) or are exempt from registration under the Securities Act. Some of our subsidiaries also issue fixed interest rate or index-linkedcontracts with features that require them to be registered as securities under the Securities Act.

Some of our subsidiaries are registered with the SEC as broker-dealers under the Securities Exchange Act of 1934 (the “Exchange Act”) and are members of,and subject to regulation by, FINRA. Certain variable contract separate accounts sponsored by our subsidiaries are exempt from registration, but may be subject toother provisions of the federal securities laws. The SEC, CFTC and FINRA from time to time propose rules and regulations that impact products deemed to besecurities. The future impact of any adopted rules and regulations on the way we conduct our business and the products we sell is unclear.

Some of our subsidiaries are registered as investment advisers with the SEC under the Investment Advisers Act of 1940, as amended, and are also registered asinvestment advisers in various states and non-U.S. jurisdictions, as applicable. We may also be subject to similar laws and regulations in non-U.S. jurisdictionswhere we provide investment advisory services or conduct other activities.

Federal and state securities regulatory authorities and FINRA from time to time make inquiries and conduct examinations regarding compliance by MetLife,Inc. and its subsidiaries with securities and other laws and regulations. We cooperate with such inquiries and examinations and take corrective action whenwarranted.

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EnvironmentalLawsandRegulations

As an owner and operator of real property in many jurisdictions, we are subject to extensive environmental laws and regulations in such jurisdictions. Inherentin such ownership and operation is also the risk that there may be potential environmental liabilities and costs in connection with any required remediation of suchproperties. In addition, we hold equity interests in companies that could potentially be subject to environmental liabilities. We routinely have environmentalassessments performed with respect to real estate being acquired for investment and real property to be acquired through foreclosure. We cannot provide assurancethat unexpected environmental liabilities will not arise. However, based on information currently available to us, we believe that any costs associated withcompliance with environmental laws and regulations or any remediation of such properties will not have a material adverse effect on our business, results ofoperations or financial condition.

UnclaimedProperty

We are subject to the laws and regulations of states and other jurisdictions concerning identification, reporting and escheatment of unclaimed or abandonedfunds, and are subject to audit and examination for compliance with these requirements. See “—Insurance Regulation — Insurance Regulatory Examinations andOther Activities” for discussion of the Regulatory Settlement Agreement relating to unclaimed proceeds. See also “Controls and Procedures” and Note 20 of theNotes to the Consolidated Financial Statements.

BrighthouseSeparationTaxTreatment

Prior to the spin-off distribution of Brighthouse Financial, Inc. common stock, we received a private letter ruling from the IRS regarding certain significantissues under the Code, as well as an opinion from tax counsel that the distribution qualified for non-recognition of gain or loss to us and our shareholders pursuantto Sections 355 and 361 of the Code, except to the extent of cash received in lieu of fractional shares, each subject to the accuracy of and compliance with certainrepresentations, assumptions and covenants therein.

Notwithstanding the receipt of the private letter ruling and the tax opinion, the IRS could determine that the distribution should be treated as a taxabletransaction, for example, if it determines that any of the representations, assumptions or covenants on which the private letter ruling is based are untrue or havebeen violated. Similarly, the IRS could determine that our disposal of FVO Brighthouse Common Stock (as defined below) in the debt-for-equity exchange shouldbe treated as a taxable transaction to MetLife, Inc. Furthermore, as part of the IRS’s policy, the IRS did not determine whether the distribution or the debt-for-equity exchange satisfies certain conditions that are necessary to qualify for non-recognition treatment. Rather, the private letter ruling is based on representationsby us and Brighthouse that these conditions have been satisfied. The tax opinion addressed the satisfaction of these conditions. The tax opinion is not binding onthe IRS or the courts, and there can be no assurance that the IRS or a court will not take a contrary position. In addition, the tax counsel relied on certainrepresentations and covenants delivered by us and Brighthouse.

If the IRS ultimately determines that the distribution is taxable, the distribution could be treated as a taxable dividend or capital gain to MetLife shareholderswho received shares of Brighthouse Financial, Inc. common stock in the distribution for U.S. federal income tax purposes, and such shareholders could incursignificant U.S. federal income tax liabilities. In addition, if the IRS ultimately determines that the distribution is taxable, we and Brighthouse could incursignificant U.S. federal income tax liabilities, and either we or Brighthouse could have an indemnification obligation to the other, depending on the circumstances.

Even if the spin-off distribution otherwise qualifies for non-recognition of gain or loss under Section 355 of the Code, it may be taxable to us, but not ourshareholders, under Section 355(e) of the Code if 50% or more (by vote or value) of our common stock or Brighthouse Financial, Inc.’s common stock is acquiredas part of a plan or series of related transactions that include the distribution. For this purpose, any acquisitions of our or Brighthouse Financial, Inc.’s commonstock within two years before or after the distribution are presumed to be part of such a plan, although we or Brighthouse may be able to rebut that presumptionbased on either applicable facts and circumstances or a “safe harbor” described in the tax regulations. Therefore, under the tax separation agreement withBrighthouse, we are restricted from certain activities and have indemnity obligations which may limit our ability to pursue strategic transactions or engage in newbusiness or other transactions that may maximize the value of our business, and might discourage or delay a strategic transaction that our shareholders mayconsider favorable.

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Cross-BorderTrade

On June 23, 2016, the U.K. held a referendum regarding its membership in the EU, resulting in a vote in favor of leaving the EU. The U.K. governmenttriggered the withdrawal process by notifying the EU on March 29, 2017 of the U.K.’s intention to withdraw from the EU (the “Article 50 Notification”). Themember withdrawal provisions in the applicable EU treaty provide that the U.K. and the EU will negotiate a withdrawal agreement during a maximum two-yearperiod (unless such period is extended by unanimous vote of the other EU member states or the U.K. withdraws its Article 50 Notification). In the meantime, theU.K. remains a member of the EU with unchanged rights to access the single EU market in goods and services. Our U.K. business model utilizes certain rights tooperate cross-border insurance and investment operations which may be modified or eliminated as a result of the U.K. exiting the EU. If the U.K. does not approveand conclude a withdrawal agreement with the EU by March 29, 2019, the U.K. will cease to be a member of the EU, but there will be no agreement governing itsfuture relationship with the EU. In such a scenario, MetLife expects to maintain its existing operating model, including as an inbound EEA-insurer under the U.K.’sTemporary Permissions Regime (“TPR”), which is expected to last for at least three years and will permit MetLife to carry on its insurance business in the U.K.during that period. Operating expenses within our businesses could increase as a result of such changes.

One of the Trump Administration’s priorities has been renegotiating certain international trade agreements, including the North American Free TradeAgreement (“NAFTA”) with Canada and Mexico. On September 30, 2018, the United States, Canada and Mexico agreed to the framework for a new internationaltrade agreement, known as the United States-Mexico-Canada Agreement (“USMCA”), which would replace NAFTA. President Trump, former Mexican PresidentEnrique Peña Nieto, and Canadian Prime Minister Justin Trudeau signed the USMCA on November 30, 2018. Each signatory’s legislature must ratify theagreement before it goes into effect.

FiscalMeasures

The new administration of President López Obrador in Mexico is implementing an austerity plan which, among other measures, has eliminated benefits suchas major medical insurance and contributions to additional savings benefit insurance for Mexican federal government personnel and public officials. Mexican stategovernments or other government institutions may introduce similar austerity policies as well. MetLife is the largest provider of benefits to Mexican federalgovernment personnel and public officials, and such austerity plans may have an adverse effect on our business.

If the U.S. Congress does not approve annual appropriations or otherwise extend appropriations by continuing resolution, many federal government agenciesmust discontinue most non-essential, discretionary functions, known as a “partial government shutdown.” Most recently, the United States government operatedunder a partial shutdown from December 22, 2018 to January 25, 2019. During a partial government shutdown, financial markets, including the government bondmarket, continue to function. If the SEC is shut down, although certain SEC functions continue, the SEC may not process new or pending registration statements,qualifications of new or pending offering statements or applications for exemptive relief, which could disrupt or delay new public bond issuances. The partialshutdown of certain other federal agencies could also delay or otherwise impact certain transactions or projects. An extended partial government shutdown couldalso negatively impact capital markets and economic conditions generally.

Company Ratings

Insurer financial strength ratings represent the opinions of rating agencies, including A.M. Best Company (“A.M. Best”), Fitch Ratings (“Fitch”), Moody’sInvestors Service (“Moody’s”) and Standard & Poor’s Global Ratings (“S&P”), regarding the ability of an insurance company to meet its financial obligations topolicyholders and contractholders.

RatingStabilityIndicators

Rating agencies use an “outlook statement” of “positive,” “stable,” ‘‘negative’’ or “developing” to indicate a medium- or long-term trend in creditfundamentals which, if continued, may lead to a rating change. A rating may have a “stable” outlook to indicate that the rating is not expected to change; however,a “stable” rating does not preclude a rating agency from changing a rating at any time, without notice. Certain rating agencies assign rating modifiers such as“CreditWatch” or “under review” to indicate their opinion regarding the potential direction of a rating. These ratings modifiers are generally assigned in connectionwith certain events such as potential mergers, acquisitions, dispositions or material changes in a company’s results, in order for the rating agency to perform itsanalysis to fully determine the rating implications of the event.

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InsurerFinancialStrengthRatings

The following insurer financial strength ratings represent each rating agency’s opinion of MetLife, Inc.’s principal insurance subsidiaries’ ability to payobligations under insurance policies and contracts in accordance with their terms and are not evaluations directed toward the protection of investors in MetLife,Inc.’s securities. Insurer financial strength ratings are not statements of fact nor are they recommendations to purchase, hold or sell any security, contract or policy.Each rating should be evaluated independently of any other rating.

Our insurer financial strength ratings at the date of this filing are indicated in the following table. Outlook is stable unless otherwise indicated. Additionalinformation about financial strength ratings can be found on the websites of the respective rating agencies.

A.M. Best Fitch Moody’s S&P

Ratings Structure “A++ (superior)” to “S(suspended)”

“AAA (exceptionallystrong)” to “C(distressed)”

“Aaa (highest quality)” to“C (lowest rated)”

“AAA (extremely strong)”to “SD (Selective Default)”

or “D (Default)”

American Life Insurance Company NR

NR A1 AA-

5th of 21 4th of 22

Metropolitan Life Insurance Company A+ AA- Aa3 AA-

2nd of 16 4th of 19 4th of 21 4th of 22

MetLife Insurance K.K. (MetLife Japan) NR

NR

NR AA-

4th of 22

Metropolitan Tower Life Insurance CompanyA+ AA- Aa3 AA-

2nd of 16 4th of 19 4th of 21 4th of 22__________________

NR = Not rated

See “Risk Factors — Economic Environment and Capital Markets Risks — A Downgrade or a Potential Downgrade in Our Financial Strength or CreditRatings Could Result in a Loss of Business and Materially Adversely Affect Our Financial Condition and Results of Operations.” See also “Management’sDiscussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company — Capital — Rating Agencies”for an in depth description of the impact of a ratings downgrade.

Competition

The life insurance industry remains highly competitive. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations —Industry Trends — Competitive Pressures.” We believe that the competition we face is based on a number of factors, including service, product features, scale,price, financial strength, claims-paying ratings, credit ratings, e-business capabilities and name recognition. We compete globally with a large number of otherinsurance companies, as well as non-insurance financial services companies, such as banks, broker-dealers and asset managers, for individual consumers, employerand other group customers, as well as agents and other distributors of insurance and investment products. Some of these companies offer a broader array ofproducts, have more competitive pricing or, with respect to other insurance companies, have higher claims paying ability ratings. In the United States and Japan,we compete with a large number of domestic and foreign-owned life insurance companies, many of which offer products in categories on which we focus.Elsewhere, we compete with the foreign insurance operations of large U.S. insurers and with global insurance groups and local companies. Many of our groupinsurance products are underwritten annually and, accordingly, there is a risk that group purchasers may be able to obtain more favorable terms from competitorsrather than renewing coverage with us.

We believe that the continued volatility of the financial markets and its impact on the capital position of many competitors will continue to strain thecompetitive environment. Although the U.S. regulatory environment has improved at the federal level, the life insurance industry continues to face challengesglobally and, within the U.S., at the state level. In the current environment, we believe that financial strength, technological efficiency and organizational agility arethe most significant differentiators and that we are building a company that is well positioned to succeed in any environment. For example, the Company primarilydistributes its products through a variety of third-party distribution channels, including banks and broker-dealers. These distribution partners are currently placinggreater emphasis on the financial strength of the company whose products they sell. An increase in bank and broker-dealer consolidation activity could increasecompetition for access to distributors. The effects of financial market volatility may also lead to consolidation in the life insurance industry.

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Competition for employees in our industry is intense, and we need to be able to attract and retain highly skilled people with knowledge of our business andindustry experience to support our business. In selected global markets, we continue to undertake several initiatives to grow our career agency forces, whilecontinuing to enhance the efficiency and production of our sales representatives. These initiatives may not succeed in attracting and retaining productive agents.See “— Segments and Corporate & Other” for information on sales distribution.

Numerous aspects of our business are subject to regulation. Legislative and other changes affecting the regulatory environment can affect our competitiveposition within the life insurance industry and within the broader financial services industry. See “— Regulation.”

Employees

At October 1, 2018 , we had approximately 48,000 employees, calculated consistent with Regulation S-K Item 402(u) without exempting any employees underRegulation S-K Item 402(u)(4). We believe that our relations with our employees are satisfactory. We invest in our employees by continuing to create learning anddevelopment opportunities, promote inclusion, support work-life balance, and enhance ownership mindset. Fostering a culture of innovation and employee learningis fundamental to how we compete.

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Executive Officers

Set forth below is information regarding the executive officers of MetLife, Inc.:

Name Age Position with MetLife and Business ExperienceSteven A. Kandarian 66 • Chairman of the Board of MetLife, Inc. (January 2012-present) (Director of MetLife, Inc. since 2011) • President and Chief Executive Officer (May 2011-present) of MetLife, Inc.

• Executive Vice President and Chief Investment Officer of MetLife, Inc. (April 2005-April 2011)John D. McCallion 45 • Executive Vice President and Chief Financial Officer of MetLife, Inc. (August 2018-present) • Executive Vice President and Chief Financial Officer and Treasurer of MetLife, Inc. (May 2018-August 2018)

• Executive Vice President and Treasurer of MetLife, Inc. (July 2016 - April 2018)

• Senior Vice President and Chief Financial Officer, EMEA, of MetLife Group, Inc. (August 2014-June 2016) • Vice President and Chief Financial Officer, EMEA, of MLIC (September 2012 - July 2014)

Stephen W. Gauster 48 • Executive Vice President and General Counsel of MetLife, Inc. (May 2018-present) • Senior Vice President and Interim General Counsel of MetLife, Inc. (July 2017-May 2018)

• Senior Vice President and Chief Counsel, General Corporate Section of the Law Department (January 2016-June 2017)

•

Senior Vice President, Chief Corporate Counsel and Assistant Secretary, Assurant, Inc., an insurance company (September 2008-December 2015)

Steven J. Goulart 60 • Executive Vice President and Chief Investment Officer of MetLife, Inc. (May 2011-present)

• Head of the Portfolio Management Unit as Senior Managing Director of MLIC (January 2011-April 2011)

Michel A. Khalaf 54 • President, U.S. Business of MetLife, Inc. (July 2017-present) • President, EMEA of MetLife, Inc. (November 2011-present) • Executive Vice President of MLIC (January 2011-November 2011)

Esther S. Lee 60 • Executive Vice President and Global Chief Marketing Officer of MetLife, Inc. (January 2015-present)

•

Senior Vice President, Brand Marketing, Advertising and Sponsorships of AT&T, Inc., a communications company (August 2011-December 2014)

Martin J. Lippert 59 • Executive Vice President and Head of Global Technology and Operations of MetLife, Inc. (November 2011-present) • Executive Vice President and Head of Global Technology of MetLife, Inc. (September 2011-November 2011)Susan M. Podlogar 55 • Executive Vice President and Chief Human Resources Officer of MetLife, Inc. (July 2017-present)

•

Vice President Human Resources Global Medical Devices, Human Resources Executive Committee, Johnson & Johnson, a medicaldevices, pharmaceutical and consumer products company (May 2016-June 2017)

•

Vice President Human Resources EMEA, Global Total Rewards, Human Resources Executive Committee, Johnson & Johnson(January 2015-May 2016)

•

Vice President Human Resources Global Total Rewards, Human Resources Executive Committee, Johnson & Johnson (January2012-May 2015)

Kishore Ponnavolu 54 • President, Asia of MetLife, Inc. (September 2018-present)

• Executive Vice President, MetLife Auto and Home (November 2013-August 2018)

Oscar A. Schmidt 59 • President of Latin America of MetLife, Inc. (May 2018-present)

• Executive Vice President, Head of Latin America of MLIC (January 2010-April 2018)Ramy Tadros 43 • Executive Vice President and Chief Risk Officer of MetLife, Inc. (September 2017-present)

• Management Consultant, Oliver Wyman, Inc., a consulting company (September 1997-July 2017)

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Trademarks

We have a worldwide trademark portfolio that we consider important in the marketing of our products and services, including, among others, the trademark“MetLife.” We also have the exclusive global license to use the Peanuts ® characters in the area of financial services under an advertising and premium agreementwith Peanuts Worldwide, LLC up to December 31, 2019. As a result of the acquisition of American Life and Delaware American Life Insurance Company(collectively, “ALICO”), we acquired trademarks of American Life, including the “ALICO” trademark. In addition, as a result of our acquisition of ProVida, weacquired “PROVIDA” and other trademarks. We believe that our rights in our trademarks and under our Peanuts ® characters license are well protected.

Available Information

MetLife files periodic reports, proxy statements and other information with the SEC. The SEC maintains an internet website (www.sec.gov) that containsreports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including MetLife, Inc.

MetLife makes available, free of charge, on its website (www.metlife.com) through the Investor Relations web page (http://investor.metlife.com), its annualreports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to all those reports, as soon as reasonably practicable afterfiling (furnishing) such reports to the SEC. MetLife encourages investors to visit the Investor Relations web page from time to time, where it announces additionalfinancial and other information about it to its investors, including in news releases, public conference calls and webcasts. The information found on MetLife’swebsite is not incorporated by reference into this Annual Report on Form 10-K or in any other report or document MetLife files with the SEC, and any referencesto MetLife’s website are intended to be inactive textual references only.

Item 1A. Risk Factors

Economic Environment and Capital Markets Risks

DifficultEconomicConditionsMayAdverselyAffectOurBusiness,ResultsofOperationsandFinancialCondition

Stressed conditions, volatility and disruptions in financial asset classes or various markets can have an adverse effect on us, in part because we have a largeinvestment portfolio and our insurance liabilities are sensitive to changing market factors. Global market factors, including interest rates, credit spreads, equityprices, derivative prices and availability, real estate markets, foreign currency exchange rates, consumer spending, business investment, government spending, thevolatility and strength of the capital markets, and deflation and inflation, and government actions taken in response to any of these factors, could all adverselyaffect our financial condition (including our liquidity and capital levels), our business operations and our ability to receive dividends from our insurancesubsidiaries and meet our obligations at MetLife, Inc., by virtue of their impact on levels of economic activity, employment, customer behavior, or mismatchedimpacts on the value of our assets and our liabilities. Such factors could also have a material adverse effect on our results of operations, financial condition,liquidity or cash flows through realized investment losses, derivative losses, changes in insurance liabilities, impairments, increased valuation allowances, increasesin reserves for future policyholder benefits, reduced net investment income and changes in unrealized gain or loss positions.

Sustained periods of low interest rates and risk asset returns could reduce income from our investment portfolio, increase our liabilities for claims and futurebenefits, and increase the cost of risk transfer measures such as hedging, causing our profit margins to erode as a result of reduced income from our investmentportfolio and increase in insurance liabilities. In the event of extreme prolonged market events, such as a global credit crisis, a market downturn, or sustained lowmarket returns we could incur significant capital or operating losses due to, among other reasons, losses incurred in our general account and as a result of theimpact on us of guarantees, including increases in liabilities, capital maintenance obligations and collateral requirements associated with our affiliated reinsurersand other similar arrangements. Any of these events could also impair our financial strength ratings.

The demand for our financial and insurance products could be adversely affected by an economic downturn resulting in higher unemployment, lower familyincome, lower corporate earnings, lower business investment, lower consumer spending, elevated incidence of claims, adverse utilization of benefits relative to ourbest estimate expectations, lapses or surrenders of policies, and policyholders choosing to defer paying insurance premiums or stop paying insurance premiumsaltogether. Such adverse changes in the economy could negatively affect our earnings and capitalization and have a material adverse effect on our business, resultsof operations and financial condition.

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Declining equity markets could decrease the account value of our variable insurance products and other products issued through separate accounts. Lowerinterest rates may result in lower returns in fixed income vehicles. Decreases in account values reduce certain fees generated by these products, which couldincrease the level of insurance liabilities we must carry to support such products issued with any associated guarantees, cause the amortization of deferred policyacquisition costs (“DAC”) to accelerate, and require us to provide additional funding to our captive reinsurers.

See:

• “Business — Regulation;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Financial and Economic Environment;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Impact of a Sustained Low Interest RateEnvironment;” and

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Current Environment.”

InterestRateRisk

Some of our products, principally traditional life, universal life, fixed annuities, GICs, funding agreements and structured settlements, expose us to the risk thatchanges in interest rates, including reductions in the difference between short-term and long-term interest rates, could reduce our investment margin or “spread,”which could in turn reduce our net income.

In a low interest rate environment, we may be forced to reinvest proceeds from investments that have matured or have been prepaid or sold at lower yields,which could reduce our investment spread. Moreover, borrowers may prepay or redeem the fixed income securities and commercial, agricultural or residentialmortgage loans in our investment portfolio with greater frequency in order to borrow at lower market rates, thereby exacerbating this risk. Although loweringinterest crediting rates can help offset decreases in spreads on some products, our ability to lower these rates is limited to the portion of our in-force productportfolio that has adjustable interest crediting rates, and could be limited by competition or contractually guaranteed minimum rates and may not match the timingor magnitude of changes in asset yields. As a result, our spread could decrease or potentially become negative, which could have a material adverse effect on ourresults of operations and financial condition.

Significantly lower spreads may cause us to accelerate amortization, thereby reducing net income and potentially negatively affecting our credit instrumentcovenants or rating agency assessment of our financial condition. In addition, during periods of declining interest rates, life insurance and annuity products may berelatively more attractive investments to consumers. This could result in increased premium payments on products with flexible premium features, repayment ofpolicy loans and increased persistency during a period when our new investments carry lower returns. A decline in market interest rates could also reduce ourreturn on investments that do not support particular policy obligations. During periods of sustained lower interest rates, our reserves for policy liabilities may not besufficient to meet future policy obligations and may need to be strengthened. Accordingly, declining and sustained lower interest rates may materially affect ourresults of operations, financial position, cash flows, and ability to take dividends from operating insurance companies, as well as significantly reduce ourprofitability.

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Increases in interest rates could also negatively affect our profitability. In periods of rapidly increasing interest rates, we may not be able to replace, in a timelymanner, the investments in our general account with higher yielding investments needed to fund the higher crediting rates necessary to keep interest rate sensitiveproducts competitive. We therefore may have to accept a lower spread and thus lower profitability or face a decline in sales and greater loss of existing contractsand related assets. In addition, policy loans, surrenders and withdrawals may increase as policyholders seek investments with higher perceived returns as interestrates rise. This process may result in cash outflows requiring that we sell investments at a time when the prices of those investments are adversely affected by theincrease in interest rates, which may result in realized investment losses. Unanticipated withdrawals, terminations and substantial policy amendments may cause usto accelerate the amortization of DAC and value of business acquired (“VOBA”), which reduces net income and potentially negatively affects our credit instrumentcovenants and rating agency assessment of our financial condition, and may also cause us to accelerate the amortization of negative VOBA, which increases netincome. An increase in interest rates could also have a material adverse effect on the value of our investment portfolio, for example, by decreasing the estimatedfair values of fixed income securities. Additionally, an increase in interest rates could increase our daily settlement payments on interest rate futures and clearedswaps, which may result in increased cash outflows and increase our liquidity needs. Furthermore, if interest rates rise, our unrealized gains on fixed incomesecurities would decrease and our unrealized losses would increase, perhaps substantially. The accumulated change in estimated fair value of these fixed incomesecurities would be recognized in net income when a gain or loss is realized upon the sale of the security or if the decline in estimated fair value is determined to beother than temporary and an impairment charge to earnings is taken. Finally, an increase in interest rates could result in decreased fee income associated with adecline in the value of variable annuity account balances invested in fixed income funds.

Actions resulting from the monetary policies of the Federal Reserve Board and of central banks around the world, including with respect to interest rates, mayalso impact the pricing levels of risk-bearing investments and may adversely impact the income we earn on our investments or the level of product sales.

Although we take measures to manage the economic risks of investing in a changing interest rate environment, we may not be able to mitigate the interest raterisk of our fixed income investments relative to our interest rate sensitive liabilities. For some of our liability portfolios it is not possible to invest assets to the fullliability duration, thereby creating some asset/liability mismatch. In addition, asymmetrical and non-economic accounting may cause material changes to our netincome and stockholders’ equity in any given period because our non-qualified derivatives are recorded at fair value through earnings, while the related hedgeditems either follow an accrual-based accounting model, such as insurance liabilities, or are recorded at fair value through other comprehensive income.

Regulators, law enforcement agencies, or the ICE Benchmark Association (the current administrator of LIBOR) may take actions resulting in changes to theway LIBOR is determined, the discontinuance of reliance on LIBOR as a benchmark rate or the establishment of alternative reference rates. The U.K. FinancialConduct Authority has announced that it intends to stop persuading or compelling banks to submit LIBOR rates after 2021. The Federal Reserve Bank of NewYork has begun publishing a Secured Overnight Funding Rate (“SOFR”), which is intended to replace U.S. dollar LIBOR, and central banks in several otherjurisdictions have also announced plans for alternative reference rates for other currencies. At this time, we cannot predict how markets will respond to these newrates, and we cannot predict the effect of any changes to or discontinuation of LIBOR on new or existing financial instruments to which we have exposure. Anychanges to or discontinuation of LIBOR may have an adverse effect on interest rates on certain derivatives and floating-rate securities we hold, securities we haveissued, or other assets or liabilities whose value is tied to LIBOR or to a LIBOR alternative. Any uncertainty regarding the continued use and reliability of LIBORcould adversely affect the value of such instruments. Furthermore, changes to or the discontinuation of LIBOR may impact other aspects of our business, includingproducts, pricing, and models. Any change to or discontinuation of similar benchmark rates besides LIBOR could have similar effects.

See:

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Impact of a Sustained Low InterestRate Environment;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Current Environment;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Fixed Maturity Securities AFS andEquity Securities;” and

• Note 9 of the Notes to the Consolidated Financial Statements.

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CreditSpreadRisk

Changes in credit spreads may result in market price volatility and cash flow variability. Market price volatility can make it difficult to value certain of oursecurities if trading becomes less frequent. In such case, valuations may include assumptions or estimates that may have significant period-to-period changes,which could have a material adverse effect on our results of operations or financial condition and may require additional reserves. Significant volatility in themarkets could cause changes in credit spreads and defaults and a lack of pricing transparency, which could have a material adverse effect on our results ofoperations, financial condition, liquidity or cash flows. An increase in credit spreads relative to U.S. Treasury benchmarks can also adversely affect the cost ofour borrowing should we need to access credit markets.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Investment Risks.”

EquityRisk

Downturns and volatility in equity markets can have a material adverse effect on the revenues and investment returns from our savings and investmentproducts and services, where fee income is earned based upon the estimated fair value of the assets that we manage. The variable annuity business in particular ishighly sensitive to equity markets, and a sustained weakness or stagnation in the equity markets could decrease revenues and earnings with respect to thoseproducts. Furthermore, certain of our variable annuity products offer guaranteed benefits that increase our potential benefit exposure should equity marketsdecline or stagnate.

Sustained declines in long-term equity returns or interest rates likely would have a negative effect on the funded status of our pension plans and otherpostretirement benefit obligations. An increase in equity markets could increase settlement payments on equity futures, which may result in increased cashoutflows and increase our liquidity needs.

The timing of distributions from and valuations of leveraged buy-out funds, hedge funds and other private equity funds in which we invest can be difficult topredict and depends on the performance of the underlying investments, the funds’ schedules for making distributions, and their needs for cash. As a result, theamount of net investment income from these investments can vary substantially from period to period. Significant volatility could adversely impact returns andnet investment income on these alternative investment classes. In addition, the estimated fair value of such alternative investments or equity securities we holdmay be adversely impacted by downturns or volatility in equity markets.

See “Quantitative and Qualitative Disclosures About Market Risk.”

RealEstateRisk

Our investments in commercial, agricultural and residential mortgage loans, and our investments in real estate and real estate joint ventures, can beadversely affected by changes in the supply and demand of leasable commercial space, creditworthiness of tenants and partners, capital markets volatility,interest rate fluctuations, commodity prices, farm incomes and housing and commercial property market conditions. These factors, which are beyond our control,could have a material adverse effect on our results of operations, financial condition, liquidity or cash flows.

ObligorandCounterpartyRisk

Our general account investments in certain countries, which we maintain to support our insurance operations and related policyholder liabilities in thesecountries and as part of our global portfolio diversification, could be adversely affected by volatility resulting from local economic and political concerns, as wellas volatility in specific sectors. Additionally, U.S. states, municipalities may face budget deficits and other financial difficulties, which could have an adverseimpact on the value of securities we hold issued by and political subdivisions or under the auspices of such U.S. states, municipalities and political subdivisions.

The issuers or guarantors of fixed income securities and mortgage loans we own may default on principal and interest payments they owe us. Additionally,the underlying collateral within asset-backed securities, including mortgage-backed securities, may default on principal and interest payments causing an adversechange in cash flows. The occurrence of a major economic downturn, acts of corporate malfeasance, widening credit spreads, or other events that adverselyaffect the issuers, guarantors or underlying collateral of these securities and mortgage loans could cause the estimated fair value of our portfolio of fixed incomesecurities and mortgage loans and our earnings to decline and the default rate of the fixed income securities and mortgage loans in our investment portfolio toincrease.

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Many of our transactions with counterparties such as brokers and dealers, central clearinghouses, commercial banks, investment banks, hedge funds andinvestment funds and other financial institutions expose us to the risk of counterparty default. Such credit risk may be exacerbated if we cannot realize thecollateral held by us in secured transactions or cannot liquidate such collateral at prices sufficient to recover the full amount of the loan or derivative exposuredue to us. Furthermore, potential action by governments and regulatory bodies, such as investment, nationalization, conservatorship, receivership and otherintervention, whether under existing legal authority or any new authority that may be created, or lack of action by governments and central banks, as well asdeterioration in the banks’ credit standing, could negatively impact these instruments, securities, transactions and investments or limit our ability to trade withthem. Any such losses or impairments to the carrying value of these investments or other changes may materially and adversely affect our business and results ofoperations.

See:

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Financial and EconomicEnvironment” and

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Current Environment — SelectedCountry and Sector Investments.”

CurrencyExchangeRateRisk

We are exposed to risks associated with fluctuations in foreign currency exchange rates against the U.S. dollar resulting from our holdings of non-U.S.dollar denominated investments, investments in foreign subsidiaries, net income from non-U.S. operations and issuance of non-U.S. dollar denominatedinstruments, including GICs and funding agreements. In general, the weakening of foreign currencies versus the U.S. dollar will adversely affect the estimatedfair value of our non-U.S. dollar denominated investments, our investments in non-U.S. subsidiaries, and our net income from non-U.S. operations. Fluctuationsin foreign currency exchange rates may make certain of our products less attractive to customers, particularly products denominated in a currency that is not thelocal currency of the market in which such products are sold, which may increase levels of early policy terminations and decrease sales volume and our amountof business in force. The negative effects described above may be exacerbated if international markets, particularly emerging markets, experience severeeconomic or financial disruptions or significant currency devaluations, if a foreign economy is determined to be “highly inflationary,” or if a country withdrawsfrom the Euro zone. Fluctuations in foreign currency exchange rates could thus have a material adverse effect on our operations, earnings and investments in theaffected countries.

We may be unable to mitigate the risk of such changes in exchange rates due to unhedged positions, asymmetrical and non-economic accounting resultingfrom derivative gains (losses) on non-qualifying hedges, the failure of hedges to effectively offset the impact of the foreign currency exchange rate fluctuation, orother factors. Even if foreign currency denominated liabilities are matched with investments denominated in the respective foreign currencies, fluctuations incurrency exchange rates may adversely affect the translation of results into our U.S. dollar basis consolidated financial statements.

See:

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Executive Summary — Other Key Information —Argentina Highly Inflationary” and

• “Quantitative and Qualitative Disclosures About Market Risk.”

DerivativesRisk

If our counterparties, clearing brokers or central clearinghouses fail or refuse to honor their obligations under our derivatives, our hedges of the related riskwill be ineffective. A counterparty’s or central clearinghouse’s insolvency, inability or unwillingness to make payments under the terms of derivativesagreements or inability or unwillingness to return collateral could have a material adverse effect on our financial condition and results of operations, includingour liquidity. If the net estimated fair value of a derivative to which we are a party declines, we may be required to pledge collateral or make payments related tosuch decline. In addition, ratings downgrades or financial difficulties of derivative counterparties may require us to utilize additional capital with respect to theimpacted businesses. Furthermore, the valuation of our derivatives could change based on changes to our valuation methodology or the discovery of errors insuch valuation or valuation methodology.

See:

• “Business — Regulation — Derivatives Regulation” and

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Derivatives.”

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TerrorismandSecurityRisks

The continued threat of terrorism, both within the U.S. and abroad, ongoing military and other actions, potential military conflicts, and heightened securitymeasures in response to these types of threats may cause significant volatility in global financial markets and result in loss of life, property damage, additionaldisruptions to commerce and reduced economic activity. The value of our investment portfolio may be adversely affected by declines in the credit and equitymarkets and reduced economic activity caused by such threats. Companies in which we maintain investments may suffer losses as a result of financial,commercial or economic disruptions, and such disruptions might affect the ability of those companies to pay interest or principal on their securities or mortgageloans. Terrorist or military actions also could disrupt our operations centers and result in higher than anticipated claims under our insurance policies.

AdverseCapitalandCreditMarketConditionsMaySignificantlyAffectOurAbilitytoMeetLiquidityNeeds,OurAccesstoCapitalandOurCostofCapital

Volatility, disruptions, or other conditions in global capital markets could also have an adverse impact on our capital, credit capacity, and liquidity. If ourstress-testing indicates that such conditions could have an impact beyond expectations, or our business otherwise requires, we may have to seek additionalfinancing, the availability and cost of which could be adversely affected by market conditions, regulatory considerations, availability of credit to our industrygenerally, our credit ratings and credit capacity, and the perception of our customers and lenders regarding our long- or short-term financial prospects if we incurlarge operating or investment losses or if the level of our business activity decreases due to a market downturn. Similarly, our access to funds may be impaired ifregulatory authorities or rating agencies take negative actions against us. Our internal sources of liquidity may prove to be insufficient and, in such case, we maynot be able to successfully obtain additional financing on favorable terms or at all. Our liquidity requirements may change if, among other things, we are requiredto return significant amounts of cash collateral on short notice under securities lending or derivatives agreements or we are required to post collateral or makepayments related to specified counterparty agreements.

Without sufficient liquidity, our ability to pay claims, other operating expenses, interest on our debt and dividends on our capital stock, to provide oursubsidiaries with cash or collateral, to maintain our securities lending activities, to replace certain maturing liabilities, to sustain our operations and investments,and to repurchase our common stock could be adversely affected, and our business and financial results may suffer. Disruptions, uncertainty or volatility in thecapital and credit markets may also limit our access to capital needed to operate our business, most significantly in our insurance operations. Such marketconditions may limit our ability to replace, in a timely manner, maturing liabilities, satisfy regulatory capital requirements, and access the capital necessary to growour business. As a result, we may be forced to delay raising capital, issue different types of securities than we would have otherwise, less effectively deploy suchcapital, issue shorter tenor securities than we prefer, or bear an unattractive cost of capital, which could decrease our profitability and significantly reduce ourfinancial flexibility. Our results of operations, financial condition, cash flows and statutory capital position could be materially adversely affected by disruptions inthe financial markets.

See:

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Securities Lending and RepurchaseAgreements;” and

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company —Liquidity.”

An Inability to Access Our Credit Facility Could Result in a Reduction in Our Liquidity and Lead to Downgrades in Our Credit and Financial StrengthRatings

Our failure to comply with or fulfill all conditions and covenants under the unsecured credit facility (the “Credit Facility”) maintained by MetLife, Inc. andMetLife Funding, Inc. (“MetLife Funding”), or the failure of lenders to fund their lending commitments (whether due to insolvency, illiquidity or other reasons) inthe amounts provided for under the terms of the Credit Facility, could restrict our ability to access the Credit Facility when needed. This could adversely affect ourability to meet our obligations as they come due and our credit and financial strength ratings, and could thus have a material adverse effect on our liquidity,financial condition and results of operations.

See:

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company —Liquidity and Capital Sources — Global Funding Sources — Credit and Committed Facilities” and

• Note 12 of the Notes to the Consolidated Financial Statements.

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ADowngradeoraPotentialDowngradeinOurFinancialStrengthorCreditRatingsCouldResultinaLossofBusinessandMateriallyAdverselyAffectOurFinancialConditionandResultsofOperations

Nationally Recognized Statistical Rating Organizations (“NRSROs”) and similar entities could downgrade our insurance companies’ financial strength ratingsor our credit ratings, or lower our ratings outlooks, at any time and without notice. Such changes could have a material adverse effect on our financial condition andresults of operations in many ways, including:

• reducing new sales of insurance products, annuities and other investment products;

• impacting the cost and availability of financing for MetLife, Inc. and its subsidiaries;

• adversely affecting our relationships with our sales force and independent sales intermediaries;

• materially increasing the number or amount of policy surrenders and withdrawals by contractholders and policyholders;

• requiring us to post collateral, including additional collateral under certain of our financing and derivative transactions;

• requiring us to reduce prices for many of our products and services to remain competitive;

• providing termination rights for the benefit of our derivative instrument counterparties;

• adversely affecting our ability to obtain reinsurance at reasonable prices or at all;

• limiting our access to the capital markets;

• increasing the cost of debt; and

• subjecting us to increased regulatory scrutiny.

NRSROs may heighten the level of scrutiny that they apply to insurance companies, increase the frequency and scope of their credit reviews, requestadditional information from the companies that they rate, and adjust upward the capital and other requirements employed in the models for maintenance of certainratings levels.

See:

• “Business — Company Ratings;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company —Liquidity and Capital Uses — Pledged Collateral;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company —Capital — Rating Agencies;” and

• Note 9 of the Notes to the Consolidated Financial Statements.

ReinsuranceMayNotBeAvailable,AffordableorAdequatetoProtectUsAgainstLosses

Market conditions beyond our control determine the availability and cost of reinsurance protection for new business, and in certain circumstances, the price ofreinsurance for business already reinsured may also increase. Any decrease in the amount of reinsurance will increase our risk of loss, and any increase in the costof reinsurance will, absent a decrease in the amount of reinsurance, reduce our earnings. Accordingly, we may be forced to incur additional expenses forreinsurance or may not be able to obtain sufficient reinsurance on acceptable terms, which could adversely affect our ability to write future business or result in theassumption of more risk with respect to the policies we issue.

Because reinsurance does not relieve us of our direct liability to policyholders, a reinsurer’s insolvency, inability or unwillingness to make payments under theterms of a reinsurance agreement, or a reinsurer’s inability or unwillingness to maintain collateral, could have a material adverse effect on our financial conditionand results of operations, including our liquidity.

See “Business — Reinsurance Activity.”

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OurStatutoryLifeInsuranceReserveFinancingsMayBeSubjecttoCostIncreases,andNewFinancingsMayBeSubjecttoLimitedMarketCapacity

Certain of our financing facilities that support statutory life insurance reserves for previously written business are subject to cost increases upon the occurrenceof specified ratings downgrades of MetLife or are subject to periodic re-pricing. Any resulting cost increases could negatively impact our financial results.Furthermore, future capacity for such statutory reserve financing structures in the marketplace is not guaranteed. If types of assets permitted under currentregulations are not available in the future to back statutory reserves, as a result of new legislation or regulations or otherwise, we would not be able to take some orall statutory reserve credit for such transactions, which could materially and adversely affect the statutory capitalization of certain of our insurance subsidiaries.

See:

• “Business — Regulation — Insurance Regulation — NAIC” and

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company —Capital — Affiliated Captive Reinsurance Transactions.”

Regulatory and Legal Risks

OurBusinessesAreHighlyRegulated,andChangesinLaws,RegulationandinSupervisoryandEnforcementPoliciesMayReduceOurProfitability,LimitOurGrowth,orOtherwiseAdverselyAffectOurBusiness,ResultsofOperationsandFinancialCondition

Our businesses are subject to a wide variety of insurance and other laws and regulations in the jurisdictions in which they operate across the world. Authoritiesand regulators may take actions or make decisions, including implementing or modifying licensing, permit, or approval requirements, that may negatively affectour business. They may also take actions or make decisions that adversely affect our customers and independent sales intermediaries or their operations, which mayaffect our business relationships with them and their ability to purchase or distribute our products, and thus may negatively affect our business in a variety ofjurisdictions. The overall regulatory environment (or changes to that environment) in the countries in which we operate, and changes in laws in those jurisdictions,could have a material adverse effect on our results of operations.

We cannot predict with any certainty the impact on our business, financial condition or results of operations of changes to legislative or administrative policiesthat can affect insurance, such as policies regarding financial services regulation, securities regulation, derivatives regulation, pension regulation, health careregulation, privacy, tort reform legislation and taxation, or any new legislation or regulatory changes that may be adopted. From time to time, regulators raiseissues during examinations or audits of MetLife, Inc.’s regulated subsidiaries that could, if determined adversely, have a material impact on us. In addition,changing interpretations of regulations by regulators and statutes may be enacted with retroactive impact, particularly in areas such as accounting or statutoryreserve requirements, may adversely affect our businesses. Further, a particular regulator or other governmental authority may interpret a law, regulation oraccounting principle differently than we have, exposing us to different or additional risks. Compliance with applicable laws and regulations, including regulatoryand securities filings requirements, is time consuming and personnel-intensive, and changes in these laws and regulations may materially increase our direct andindirect compliance and other expenses of doing business. Additionally, any failure to strictly comply with regulatory or securities filing requirements, or any otherlegal or regulatory requirements, could harm our reputation or result in regulatory sanctions or legal claims. Changes to or failure to comply with applicable lawsand regulations could thus have a material adverse effect on our financial condition and results of operations.

In addition, solvency standards under development in several markets may impact our capital requirements, risk management infrastructure and reporting.Furthermore, there can be no assurance that MetLife will not in the future be subject to enhanced capital standards, supervision and additional requirements, suchas G-SII requirements or other group capital standards or insurer capital standards. Under provisions of Dodd-Frank, if MetLife, Inc. were to become insolvent orwere in danger of defaulting on its obligations and it was determined that such default would have serious effects on financial stability in the U.S., MetLife, Inc.could be compelled to undergo liquidation with the FDIC as receiver. If the FDIC were appointed as the receiver, liquidation would occur under the provisions ofthe new liquidation authority and not under the Bankruptcy Code. In an FDIC-managed liquidation, our shareholders and unsecured creditors could bear greaterlosses than they would in a liquidation under the Bankruptcy Code. These provisions could also apply to financial institutions whose debt securities we hold in ourinvestment portfolio and could adversely affect our position as a creditor and the value of our holdings. We could also be subject to assessment of charges to coverthe costs of liquidating any financial company subject to the new liquidation authority, which could have a material adverse effect on our financial condition.

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Changes to the laws and regulations that govern the conduct of our variable and registered fixed insurance products business and the firms that distribute theseproducts could adversely affect our operations and profitability. Such changes could increase our regulatory and compliance burden, resulting in increased costs, orlimit the type, amount or structure of compensation arrangements into which we may enter with certain of our associates, which could negatively impact our abilityto compete with other companies in recruiting and retaining key personnel. Additionally, our ability to react to rapidly changing economic conditions and thedynamic, competitive market for variable and registered fixed products will depend on the continued efficacy of provisions we have incorporated into our productdesign allowing frequent and contemporaneous revisions of key pricing elements, as well as our ability to work collaboratively with securities regulators. Changesin regulatory approval processes, rules and other dynamics in the regulatory process could adversely impact our ability to react to such changing conditions.

We also cannot predict with certainty the impact of rules, should they take effect, substantially expanding the definition of “investment advice” and imposingan impartial or “best interests” standard in providing such advice, thereby broadening the circumstances under which MetLife or its representatives could bedeemed a fiduciary under ERISA or the Code, or amendments to certain prohibited transaction exemptions, will have on our products and services to certainemployee benefit plans that are subject to ERISA or the Code. Furthermore, we cannot predict the impact that “best interest” standards recently proposed byvarious regulators may have on our business, results of operations, or financial condition. Compliance with new or changed rules or legislation in this area mayincrease our regulatory burden and that of our independent sales intermediaries, require changes to our compensation practices and product offerings, and increaselitigation risk, which could adversely affect our results of operations and financial condition.

Laws, regulations, or regulatory actions regarding health care and other areas may also adversely affect our ability to continue to offer our products, includingnon-medical health and dental insurance products, in the same manner as we do today and may result in increased and unpredictable costs to provide certainproducts, thereby harming our competitive position. We are unable to predict how future changes, if any, to laws or regulations may affect us or the products thatwe offer.

We provide employment-related benefits to our associates and to certain of our retirees under complex plans that are subject to a variety of regulatoryrequirements. If laws, regulations or regulatory actions result in changes to those benefits, it could adversely affect our ability to attract, retain and motivate ourassociates. Such laws, regulations and regulatory actions could also result in increased or unpredictable costs to provide employee benefits, and could harm ourcompetitive position if we are subject to fees, penalties, tax provisions or other limitations and our competitors are not.

In addition, rules on defined benefit pension plan funding may negatively impact the likelihood or timing of corporate plan sponsors terminating their plans orengaging in transactions to partially or fully transfer pension obligations to an insurance company. Consequently, such rules could indirectly affect the mix of ourbusiness, resulting in fewer pension risk transfers and more non-guaranteed funding products, and could adversely impact our results of operations.

Changes in laws and regulations that affect our customers and independent sales intermediaries or their operations also may affect our business relationshipswith them and their ability to purchase or distribute our products. Such actions may negatively affect our business and results of operations.

If our associates fail to adhere to regulatory requirements or our policies and procedures, we may be subject to penalties, restrictions or other sanctions byapplicable regulators, and we may suffer reputational harm.

See “Business — Regulation,” as supplemented by discussions of regulatory developments in our subsequently filed Quarterly Reports on Form 10-Q underthe caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Regulatory Developments.”

ChangesinTaxLawsorInterpretationsofSuchLawsCouldReduceOurEarningsandMateriallyImpactOurOperationsbyIncreasingOurCorporateTaxesandMakingSomeofOurProductsLessAttractivetoConsumers

Changes in tax laws or interpretations of such laws could increase our corporate taxes and reduce our earnings. Global budget deficits make it likely thatgovernments’ need for additional offsetting revenue will result in future tax proposals that will increase our effective tax rate or have product implications.However, it remains difficult to predict the timing and effect that future tax law changes could have on our earnings. Such changes could not only directly impactour corporate taxes but also could adversely impact our products (including life insurance and retirement plans) by making some of our products less attractive toconsumers. A shift away from life insurance and annuity contracts and other tax-deferred products by our customers would reduce our income from sales of theseproducts, as well as the asset base upon which we earn investment income and fees, thereby reducing our earnings and potentially affecting the value of ourdeferred tax assets.

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The precise impact of certain provisions of U.S. Tax Reform is still uncertain. For instance, many regulations under the new law have not been finalized orhave only recently been finalized, including certain rules on international taxation. U.S. Tax Reform thus contains provisions whose meaning is subject to differinginterpretations, and future guidance may materially differ from our current interpretation.

See:

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Executive Summary — Overview — U.S. Tax Reform”and

• Note 18 of the Notes to the Consolidated Financial Statements.

Litigation and Regulatory Investigations Are Increasingly Common in Our Businesses and May Result in Significant Financial Losses and Harm to OurReputation

We face a significant risk of litigation and regulatory investigations and actions in the ordinary course of operating our businesses. Plaintiffs’ lawyers maybring or are bringing class actions and individual suits alleging, among other things, issues relating to sales or underwriting practices, claims payments andprocedures, product design, disclosure, administration, investments, denial or delay of benefits and breaches of fiduciary or other duties to customers. Plaintiffs inclass action and other lawsuits against us may seek very large or indeterminate amounts, including punitive and treble damages. Due to the vagaries of litigation,the outcome of a litigation matter and the amount or range of potential loss at particular points in time may often be difficult to ascertain. Uncertainties can includehow fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply thelaw in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. In addition, a court or other governmental authoritymay interpret a law, regulation or accounting principle differently than we have, exposing us to different or additional risks. Disposition valuations are also subjectto the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.

A substantial legal liability or a significant federal, state or other regulatory action against us, as well as regulatory inquiries or investigations, could harm ourreputation, result in material fines or penalties, result in significant legal costs and otherwise have a material adverse effect on our business, financial condition andresults of operations. Even if we ultimately prevail in the litigation, regulatory action or investigation, our ability to attract new customers, retain our currentcustomers and recruit and retain associates could be materially and adversely impacted. Regulatory inquiries and litigation may also cause volatility in the price ofstocks of companies in our industry.

Current claims, litigation, unasserted claims probable of assertion, investigations and other proceedings against us could have a material adverse effect on ourbusiness, financial condition or results of operations. It is also possible that related or unrelated claims, litigation, unasserted claims probable of assertion,investigations and proceedings may arise or be commenced in the future, and we could become subject to further investigations, lawsuits, or enforcement actions.Increased regulatory scrutiny and any resulting investigations or proceedings could result in new legal actions and precedents and industry-wide regulations thatcould adversely affect our business, financial condition and results of operations.

Material pending litigation and regulatory matters affecting us and risks to our business presented by these proceedings are discussed in Note 20 of the Notesto the Consolidated Financial Statements. Updates are provided in the notes to our interim condensed consolidated financial statements regarding contingencies,commitments and guarantees included in our subsequently filed quarterly reports on Form 10-Q, as well as in Part II, Item 1 (“Legal Proceedings”) of thosequarterly reports.

Capital Risks

LegalandRegulatoryRestrictionsMayPreventUsfromPayingDividendsandRepurchasingOurStockattheLevelWeWish

There is no assurance that we will declare and pay any dividends or repurchase any of our common stock. Dividends are subject to the discretion of our Boardof Directors and will depend on our financial condition, results of operations, cash requirements, future prospects, regulatory restrictions on the payment ofdividends by MetLife, Inc.’s insurance subsidiaries and other factors deemed relevant by the Board. Common stock repurchases are also subject to the discretion ofour Board of Directors and will depend upon our capital position, liquidity, financial strength and credit ratings, general market conditions, the market price of ourcommon stock compared to management’s assessment of the stock’s underlying value, applicable regulatory approvals, and other legal and accounting factors.

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Terms applicable to our Floating Rate Non-Cumulative Preferred Stock, Series A (the “Series A preferred stock”), junior subordinated debentures and trustsecurities may restrict our ability to pay dividends or interest on those instruments in certain circumstances. MetLife is also permitted under the terms of our juniorsubordinated debentures to suspend payments of interest during certain periods of time. Such suspension of payments, whether required or optional, could cause“dividend stopper” provisions applicable under those and other instruments to restrict our ability to pay dividends on our common stock and repurchase ourcommon stock in various situations, including situations where we may be experiencing financial stress, and may restrict our ability to pay dividends or interest onour preferred stock and junior subordinated debentures as well. Replacement capital covenants may limit our ability to eliminate some of these restrictions throughthe repayment, redemption or purchase of junior subordinated debentures.

Under Rule 10b5-1 of the Exchange Act, we may be restricted from repurchasing shares or entering into share repurchase programs when we are aware ofmaterial non-public information. These restrictions may limit our ability to repurchase shares from time to time, including but not limited to periods of significantcorporate reorganization.

See:

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — MetLife, Inc. —Liquidity and Capital Sources — Dividends from Subsidiaries” and

• “Dividend Restrictions” in Note 15 of the Notes to the Consolidated Financial Statements.

AsaHoldingCompany,MetLife,Inc.DependsontheAbilityofItsSubsidiariestoPayDividends,aMajorComponentofHoldingCompanyFreeCashFlow

If the cash MetLife, Inc. receives from its subsidiaries through dividends and permitted payments under the tax sharing agreement with its subsidiaries isinsufficient for it to fund its debt service and other holding company obligations, MetLife, Inc. may be required to raise cash through the incurrence of debt, theissuance of additional equity or the sale of assets. If MetLife, Inc.’s operating subsidiaries are unable to make expected dividend payments to MetLife, Inc., wemay be unable to meet our free cash flow goals, and our ability to distribute cash to shareholders could be adversely affected.

Dividends to MetLife, Inc. by its insurance subsidiaries in excess of prescribed limits generally require insurance regulatory approval. In addition, insuranceregulators may prohibit the payment of dividends or other payments to MetLife, Inc. by its insurance subsidiaries if they determine that the payment could beadverse to our policyholders or contractholders. The payment of dividends and other distributions by insurance companies may also be limited by businessconditions and rating agency considerations. Furthermore, any payment of interest, dividends, distributions, loans or advances by our foreign subsidiaries andbranches to MetLife, Inc. could be subject to taxation, insurance regulatory or other restrictions on dividends or repatriation of earnings under applicable law,monetary transfer restrictions and foreign currency exchange regulations in the jurisdiction in which such foreign subsidiaries operate.

Net worth maintenance or other support agreements, which MetLife, Inc. or its subsidiaries may from time to time establish with their subsidiaries, mayrequire MetLife, Inc. or such other supporting subsidiary to transfer capital to such supported subsidiary, thereby limiting capital that is available for otherpurposes.

See:

• “Business — Regulation —Insurance Regulation — Surplus and Capital;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — MetLife, Inc. —Liquidity and Capital Sources — Dividends from Subsidiaries;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — MetLife, Inc. —Liquidity and Capital Uses — Support Agreements;” and

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP and Other Financial Disclosures.”

Investment Risks

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Defaults, Downgrades, Volatility or Other Events May Adversely Affect the Investments We Hold, Resulting in a Reduction in Our Net Income andProfitability

A major economic downturn, acts of corporate malfeasance, widening credit risk spreads, ratings downgrades or other events could adversely affect the issuersor guarantors of securities or the underlying collateral of structured securities that we hold, which could cause the estimated fair value of our fixed incomesecurities portfolio and corresponding earnings to decline and the default rate of the fixed income securities in our investment portfolio to increase. Similarly, aratings downgrade affecting a security we hold could require us to hold more capital to support that security in order to maintain our RBC levels. Our intent to sell,or our assessment of the likelihood that we will be required to sell, fixed income securities may adversely impact levels of writedowns or impairments. Realizedlosses or impairments on these securities may have a material adverse effect on our net income in a particular quarterly or annual period.

An increase in the default rate of our mortgage loan investments or fluctuations in their performance could have a material adverse effect on our business,results of operations and financial condition. Substantially all of our commercial and agricultural mortgage loans held for investment have balloon paymentmaturities, which may increase the risk of default. Any geographic or property type concentration of our mortgage loans may have adverse effects on ourinvestment portfolio and consequently on our results of operations or financial condition, and our ability to sell assets relating to such particular groups of relatedassets may be limited if other market participants are seeking to sell at the same time. In addition, legislation that would allow or require modifications to the termsof mortgage loans could have an adverse effect on our investment portfolio, results of operations or financial condition.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Mortgage Loans.”

WeMayHaveDifficultySellingCertainHoldingsinOurInvestmentPortfolioorinOurSecuritiesLendingPrograminaTimelyMannerandRealizingFullValue

There may be a limited market for certain investments we hold in our investment portfolio, making them relatively illiquid. These include privately-placedfixed income securities, certain derivative instruments, mortgage loans, policy loans, direct financing and leveraged leases, other limited partnership interests, taxcredit and renewable energy partnerships and real estate equity, including real estate joint ventures and funds. Even some of our very high quality investments mayexperience reduced liquidity during periods of market volatility or disruption. If we are forced to sell certain assets in our investment portfolio during periods ofmarket volatility or disruption, market prices may be lower than our carrying value in such investments, and we may have difficulty selling such investments in atimely manner, be forced to sell investments in a volatile or illiquid market for less than we otherwise would have been able to realize under normal marketconditions, or both. This may result in realized losses that could have a material adverse effect on our results of operations and financial condition, as well as ourfinancial ratios, which could in turn affect compliance with our credit instruments and rating agency capital adequacy measures.

We may face similar risks if we are required under our securities lending program to return significant amounts of cash collateral that we have invested. If wedecrease the amount of our securities lending activities over time in response to such risks, the amount of net investment income generated by these activities willalso likely decline.

Our Requirements to Pledge Collateral or Make Payments Related to Declines in Estimated Fair Value of Derivatives Transactions or Specified Assets inConnectionwithOTC-ClearedandOTC-BilateralTransactionsMayAdverselyAffectOurLiquidity,ExposeUstoCentralClearinghouseandCounterpartyCreditRisk,andIncreaseourCostsofHedging

The amount of collateral we may be required to pledge and the payments we may be required to make under our derivatives transactions may increase undercertain circumstances. The OCC, the Federal Reserve Board, FDIC, Prudential Regulators, the CFTC, central clearinghouses and counterparties may restrict oreliminate certain types of eligible collateral or charge us to pledge such non-cash collateral, which would increase our costs and could adversely affect the liquidityof our investments and the composition of our investment portfolio.

See:

• “Business — Regulation — Derivatives Regulation;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company —Liquidity and Capital Uses — Pledged Collateral;” and

• Note 9 of the Notes to the Consolidated Financial Statements.

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ChangestoOurValuationofSecuritiesandInvestments,theAllowancesandImpairmentsTakenonOurInvestments,andOurMethodologies,EstimationsandAssumptionsCouldMateriallyAdverselyAffectOurResultsofOperationsorFinancialCondition

Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuationmethodologies may have a material effect on the estimated fair value amounts. During periods of market disruption, including periods of significantly rising orhigh interest rates, rapidly widening credit spreads or illiquidity, or if trading becomes less frequent or market data becomes less observable, it may be difficult tovalue certain of our securities, and certain asset classes may become illiquid. In such cases, our valuations may be based on inputs that are less observable and moresubjective, which may result in estimated fair values that significantly exceed the amount at which the investments may ultimately be sold. Furthermore, rapidlychanging credit and equity market conditions could materially and adversely impact the valuation of securities as reported within our consolidated financialstatements, and the period-to-period changes in estimated fair value could vary significantly. Historical trends may not be indicative of future impairments orallowances. Decreases in the estimated fair value of securities we hold may have a material adverse effect on our results of operations or financial condition.

See:

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments” and

• Notes 1 , 8 and 10 of the Notes to the Consolidated Financial Statements.

Business Risks

DifferencesBetweenActualClaimsExperienceandUnderwritingandReservingAssumptionsMayAdverselyAffectOurFinancialResults

Our earnings significantly depend upon the extent to which our actual claims experience is consistent with the assumptions we use in setting prices for ourproducts and establishing liabilities for future policy benefits and claims. To the extent that actual claims experience is less favorable than the underlyingassumptions we used in establishing such liabilities, we could be required to reduce DAC or VOBA, increase our liabilities or incur higher costs.

We cannot determine precisely the amounts that we will ultimately pay to settle our liabilities, particularly when those payments may not occur until well intothe future. We evaluate our actual experience and liabilities periodically based on accounting requirements, and that evaluation can result in a change to liabilityassumptions that may increase our liabilities. Reserve estimates in some instances are also affected by our operating practices and procedures that are used, amongother things, to support our assumptions with respect to the Company’s obligations to its policyholders and contractholders. These practices and proceduresinclude, among other things, obtaining, accumulating, and filtering data, and our use of technology, such as database analysis and electronic communications. Tothe extent that these practices and procedures do not accurately produce the data to support our assumptions or cause us to change our assumptions, or to the extentthat enhanced technological tools become available to us, such assumptions and procedures, as well as our reserves, may require adjustment. Furthermore, to theextent that any of our operating practices and procedures do not accurately produce, or reproduce, data that we use to conduct any or all aspects of our business,such errors may negatively impact our business, reputation, results of operations, and financial condition.

Increased longevity due to improvements in medical technologies may require us to modify our assumptions, models, or reserves. Additionally, increases inthe prevalence and accuracy of genetic testing, or legislation or regulation regarding the use by insurers of information produced by such testing, may exacerbateadverse selection risks. Such changes in medical technologies may thus have a material adverse effect on our business, results of operations, and financialcondition.

See:

• “Business — Policyholder Liabilities;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Policyholder Liabilities;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — DeferredPolicy Acquisition Costs and Value of Business Acquired;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates —Derivatives;” and

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations — Consolidated Results — YearEnded December 31, 2018 Compared with the Year Ended December 31, 2017 — Actuarial Assumption Review and Certain Other InsuranceAdjustments.”

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TheGlobalNatureofOurOperationsExposesUstoaVarietyofPolitical,Legal,Operational,EconomicandOtherRisks

The global nature of our business operations exposes us to a wide range of political, legal, operational, economic and other risks, including but not limited to:

• nationalization or expropriation of assets;

• imposition of limits on foreign ownership of local companies;

• changes in laws (including insurance and tax laws and regulations), their application or interpretation, including retroactive application of such changes;

• political instability (including any government’s inability to maintain operations or funding);

• economic or trade sanctions;

• dividend limitations;

• price controls;

• changes in applicable currency;

• currency exchange controls or other restrictions that prevent us from transferring funds out of the countries in which we operate or converting localcurrencies we hold into U.S. dollars or other currencies;

• difficulty in enforcing contracts;

• imposition of regulations limiting our ability to distribute our products; and

• public or political criticism of our products, practices, and other aspects of our business and operations.

Such actions or events may negatively affect our business or reputation in the relevant jurisdictions and could indirectly affect our business or reputation inother jurisdictions as well. Some of our operations are, and are likely to continue to be, in emerging markets, where many of these risks are heightened.

Additionally, we face risks related to a number of issues or concerns that may impact our global operations, including but not limited to international tradeagreements (e.g., NAFTA/USMCA), uncertainties in intergovernmental organizations (e.g., the EU and the U.K.’s planned withdrawal from it), pension systemreforms, and others.

If we encounter labor problems with workers’ associations or trade unions, or if any of our businesses is not successful, we may lose all or most of ourinvestment in building and training the sales force in that business, which may adversely affect our results of operations.

Expanding our operations to new businesses or jurisdictions may require considerable management time and start-up expenses before significant, if any,revenues and earnings are generated, which may reduce the amount of management and financial resources available for other uses. Our operations in new orexisting markets may achieve low margins or may be unprofitable, which may negatively impact our operating margins and results of operations.

See:

• “Business — Regulation;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Financial and Economic Environment;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Current Environment — Selected Countryand Sector Investments;” and

• “Quantitative and Qualitative Disclosures About Market Risk.”

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CompetitiveFactorsMayAdverselyAffectOurMarketShareandProfitability

Competitive pressures, based on a number of factors including service, product features, scale, price, financial strength, claims-paying ratings, credit ratings, e-business capabilities, name recognition, and other factors, may adversely affect the persistency of our products and our ability to sell products in the future. We canbe adversely affected by competition from other insurance companies, as well as non-insurance financial services companies such as banks, broker-dealers andasset managers, which may have a broader array of products, more competitive pricing, higher claims paying ability ratings, greater financial resources with whichto compete, or pre-existing customer bases for financial services products. Additionally, we may lose purchasers of group insurance products that are underwrittenannually if they are able to obtain more favorable terms from competitors than they could by renewing coverage with us. These competitive pressures mayadversely affect the persistency of these and other products, as well as our ability to sell our products in the future. Furthermore, the investment management andsecurities brokerage businesses have relatively low barriers to entry and continually attract new entrants. Our customers and clients may engage other financialservice providers, and the resulting loss of business could negatively affect our results of operations or financial condition.

An increase in consolidation activity among banks and broker-dealers, through which the insurance industry distributes many of its individual products, maynegatively impact the industry’s sales, and such consolidation could increase competition for access to distributors, result in greater distribution expenses andimpair our ability to market insurance products to our current customer base or to expand our customer base. Consolidation of distributors or other industrychanges may also increase the likelihood that distributors will try to renegotiate the terms of existing selling agreements to terms less favorable to us.

In addition, legislative and other changes affecting the regulatory environment for our business may have the effect of supporting or burdening some aspects ofor actors in the financial services industry more than others, which could adversely affect our competitive position within the life insurance industry and within thebroader financial services industry.

See:

• “Business — Competition;”

• “Business — Regulation;” and

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Competitive Pressures.”

TechnologicalChangesMayPresentNewandIntensifiedChallengestoOurBusiness

Recent and future changes in technology may present us with new challenges and may intensify many of the challenges that we already face. For example, as aresult of the availability of new technological tools for data collection and analysis, we have access to an increasing amount of data, from an increasing variety ofsources, regarding deaths of our policyholders and annuitants. We may be unable to accurately or completely process this increased volume of information withinthe time periods required by applicable standards. Furthermore, the additional information that we obtain as a result of technological improvements may require usto modify our assumptions, models, or reserves. Changes in technology related to collection and analysis of data regarding customers could, in these ways orothers, expose us to regulatory or legal actions and may have a material adverse effect on our business, reputation, results of operations, and financial condition.

Technological changes may impact the ways in which we interact with our customers. As technology evolves, customers may expect increased choices in theways in which they interact with us, and we may be required to redesign certain of our products to meet changing customer preferences. Our distribution channelsmay become more automated in order to provide customers with increased flexibility to access our services and products at times and places of their choosing.Such changes may require significant costs to implement. If we are unsuccessful in implementing such changes, our competitive position may be harmed and ourrelationships with our distribution partners may suffer.

Technological advances may also impact the composition and results of our investment portfolio. For example, changes in energy technology may impact therelative attractiveness of investments in a variety of energy sources, and increasing consumer preferences for e-commerce may negatively impact the profitabilityof retail and commercial real estate. If we are unable to adjust our investments in reaction to such changes, our results of operations and financial condition may bematerially and adversely affected.

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CatastrophesMayAdverselyImpactLiabilitiesforPolicyholderClaimsandReinsuranceAvailability

Claims resulting from catastrophic events could cause substantial volatility in our financial results for any fiscal quarter or year and could materially reduceour profitability or harm our financial condition. In addition, catastrophic events could harm the financial condition of issuers of obligations we hold in ourinvestment portfolio, resulting in impairments to these obligations, and could also harm the financial condition of our reinsurers, thereby increasing the probabilityof default on reinsurance recoveries. Large-scale catastrophic events may also reduce the overall level of economic activity in affected countries, which could hurtour business and the value of our investments or our ability to write new business. It is possible that increases in the value of property, caused by inflation or otherfactors, and geographic concentration of insured lives or property, could increase the severity of claims we receive from future catastrophic events. Due to theirnature, we cannot predict the incidence, timing and severity of catastrophic events.

Our life insurance operations face the risk of catastrophic mortality, such as a pandemic or other event that causes a large number of deaths. A significantpandemic could have a major impact on the global economy and financial markets or could result in disruption to our business operations. The effectiveness ofexternal parties, including governmental and non-governmental organizations, in combating the spread and severity of such a pandemic is outside of our controland could have a material impact on the losses we experience. A localized event that affects the workplace of one or more of our group insurance customers couldcause a significant loss due to mortality or morbidity claims. These events could have a material adverse effect on our business, results of operations and financialcondition in any period.

Our Property & Casualty businesses will likely experience, from time to time, catastrophe losses as a result of various events, including hurricanes,windstorms, earthquakes, hail, tornadoes, explosions, severe winter weather, fires and man-made events such as terrorist attacks, which may have a materialadverse impact on our business, results of operations and financial condition in any period.

Climate change may increase the frequency and severity of weather related disasters and pandemics. In addition, climate change regulation may affect theprospects of companies and other entities whose securities we hold or our willingness to continue to hold their securities. It may also impact other counterparties,including reinsurers, and affect the value of our investments, including real estate investments. We cannot predict the long-term impacts on us from climate changeor related regulation.

Consistent with industry practice and accounting standards, we establish liabilities for claims arising from a catastrophe only after assessing the probablelosses arising from the event. We cannot be certain that the liabilities we have established will be adequate to cover actual claim liabilities. State legislation that hasthe effect of limiting the ability of insurers to manage risk, such as legislation restricting an insurer’s ability to withdraw from catastrophe-prone areas or requiringregulatory approval of internal reinsurance transactions, may impede our efforts to manage our catastrophe risk. Our ability to manage catastrophe risk alsodepends in part on our ability to obtain catastrophe reinsurance, which may not be available at commercially acceptable rates, or at all, in the future.

A catastrophic event could render inadequate the funds of guaranty associations or similar organizations, and we may be called upon to contribute additionalamounts, which may have a material impact on our financial condition or results of operations.

See:

• “Business — Regulation — Insurance Regulation — Guaranty Associations and Similar Arrangements;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Executive Summary — Other Key Information —Hurricanes;” and

• Note 20 of the Notes to the Consolidated Financial Statements.

WeMayNeedtoFundDeficienciesinOurClosedBlock;AssetsAllocatedtotheClosedBlockBenefitOnlytheHoldersofClosedBlockPolicies

The closed block assets established in connection with the demutualization of MLIC, the cash flows generated by the closed block assets and the anticipatedrevenue from the policies included in the closed block may not be sufficient to provide for the benefits guaranteed under these policies. If they are not, we mustfund the shortfall. Even if they are sufficient, we may choose, for competitive reasons, to support policyholder dividend payments with our general account funds.Such actions may reduce funds that would otherwise be available to us for other uses and could thus adversely impact our results of operations or financialcondition.

See Note 7 of the Notes to the Consolidated Financial Statements.

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WeMayBeRequiredtoRecognizeanImpairmentofOurGoodwillorOtherLong-LivedAssetsortoEstablishaValuationAllowanceAgainstOurDeferredIncomeTaxAssets

If the performance of our businesses are negatively impacted by prolonged market declines or other factors, the estimated fair value of the reporting units onwhich we perform our goodwill impairment testing may be reduced, which may result in a determination that the goodwill has been impaired. In such case, wemust write down the goodwill by the amount of the impairment, with a corresponding charge to net income. Such write-downs could have an adverse effect on ourresults of operations or financial position.

Similarly, if impairment testing of long-lived assets, including but not limited to real estate, indicates that we will be unable to recover the carrying amount ofsuch an asset, we must write down the asset, which could have a material adverse effect on our results of operations or financial position.

Management may determine that it is more likely than not that any particular deferred income tax asset will not be realized, based on factors such as theperformance of the business including the ability to generate future taxable income. In such circumstance, a valuation allowance must be established with acorresponding charge to net income. Such charges could have a material adverse effect on our results of operations or financial position. In addition, changes in thecorporate tax rates could affect the value of our deferred tax assets and may require a write-off of some of those assets.

See:

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — Goodwill;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — IncomeTaxes;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Executive Summary — Overview — U.S. Tax Reform;”and

• Notes 1 and 11 of the Notes to the Consolidated Financial Statements.

WeMayBeRequiredtoAcceleratetheAmortizationoforImpairDAC,DSIorVOBA

DAC, deferred sales inducements (“DSI”) and VOBA for certain products are amortized in proportion to actual and expected gross profits or margins. Lowinvestment returns, mortality, morbidity, persistency, interest crediting rates, dividends paid to policyholders, expenses to administer the business, creditworthinessof reinsurance counterparties and certain economic variables, such as inflation may negatively affect the amount of future gross profit or margins. If actual grossprofits or margins are less than originally expected, then the amortization of such costs would be accelerated in the period the actual experience is known andwould result in a charge to net income. Significant or sustained equity market declines or significantly lower spreads could result in an acceleration of amortizationof DAC, DSI and VOBA, resulting in a charge to net income. Such adjustments could have a material adverse effect on our results of operations or financialcondition.

See:

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — DeferredPolicy Acquisition Costs and Value of Business Acquired;”

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Impact of a Sustained Low Interest RateEnvironment;” and

• Note 1 of the Notes to the Consolidated Financial Statements.

Guarantees Within Certain Products May Decrease Our Earnings, Increase the Volatility of Our Results, Result in Higher Risk Management Costs andExposeUstoIncreasedCounterpartyRisk

The valuation of our liabilities associated with products that include guaranteed benefits, including guaranteed minimum death benefits (“GMDBs”) (includingbut not limited to no-lapse guarantee benefits), guaranteed minimum withdrawal benefits (“GMWBs”), guaranteed minimum accumulation benefits (“GMABs”),guaranteed minimum income benefits (“GMIBs”), and minimum crediting rate features could increase in the event of significant and sustained downturns in equitymarkets, increased equity volatility, or reduced interest rates. An increase in these liabilities would result in a decrease in our net income.

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The derivatives and other risk management strategies we use to hedge the economic exposure to these liabilities that do not qualify for hedge accountingtreatment may result in volatility in the results of our operations, including net income, to the extent the financial measurement of the hedged liability does not fullyreflect the sensitivity to the underlying economic exposure. The risk management strategies and hedging instruments that we use to directly mitigate the volatilityin net income associated with certain of these liabilities, including the use of reinsurance and derivatives, may not effectively offset the costs of guarantees and maynot be completely effective. Furthermore, changes in policyholder behavior or mortality, combined with adverse market events, may produce economic losses notaddressed by the risk management techniques employed. These factors may have a material adverse effect on our results of operations, including net income,capitalization, financial condition or liquidity, including our ability to receive dividends from our operating insurance companies.

See:

• “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Policyholder Liabilities — Variable Annuity Guarantees”and

• Note 1 of the Notes to the Consolidated Financial Statements.

Operational Risks

OurRiskManagementPoliciesandProceduresorOurModelsMayLeaveUsExposedtoUnidentifiedorUnanticipatedRisk

Our enterprise risk management policies and procedures may not be sufficiently comprehensive and may not identify every risk to which we are exposed.Many of our methods for managing risk and exposures are based upon the use of observed historical market behavior to model or project potential future exposure.

Models used by our business are based on assumptions, projections and data that may be inaccurate. Business or other decisions, including determination ofreserves, based on incorrect or misused model output and reports could have a material adverse impact on our results of operations. Models used by our businessmay be misspecified for their intended purpose, may be misused, may not operate properly, and may contain errors related to model inputs, data, assumptions,calculations, or output. We perform model reviews that could give rise to adjustments to models that may adversely impact our results of operations. Additionally,our model review process may not adequately identify or remediate errors in or related to our models. As a result, our models may not fully predict futureexposures or correctly reflect past experience, which may have a material impact on our business, reputation, results of operations or financial condition.

Other risk management methods depend upon the evaluation of information regarding markets, clients, catastrophe occurrence or other matters that arepublicly available or otherwise accessible to us. This information may not always be accurate, complete, up-to-date or properly evaluated. Furthermore, there canbe no assurance that we can effectively review and monitor all risks or that all of our associates will follow our risk management policies and procedures, nor canthere be any assurance that our risk management policies and procedures will enable us to accurately identify all risks and limit our exposures based on ourassessments. In addition, we may have to implement more extensive and perhaps different risk management policies and procedures in the future due to legal andregulatory requirements, which could result in increased costs and may adversely affect our results of operations.

See:

• “Business — Regulation — Insurance Regulation” and

• “Quantitative and Qualitative Disclosures About Market Risk.”

OurPoliciesandProceduresMayBeInsufficientToProtectUsFromCertainOperationalRisks

We are highly dependent on our ability to process a large number of complex transactions across our businesses. The large number of transactions we process,and complexity of our administrative systems, makes it possible that errors will occasionally occur, and the controls and procedures we have in place to preventsuch errors may not be entirely effective. The occurrence of mistakes, particularly significant ones, can subject us to claims from our customers and may have amaterial adverse effect on our reputation, business, results of operations, or financial condition.

We are dependent on our group product customers or their employees for certain information to accurately review and pay claims on many of our products. Ifwe are unable to obtain necessary and accurate information from our customers, we may be unable to provide or verify coverage and to pay claims, or we may payclaims without accurate or complete documentation, which may have a material adverse effect on our reputation, business, results of operations, or financialcondition.

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From time to time, we rely on vendors or other service providers for services related to the administration of our products, investment management, or otherbusiness operations. To the extent our efforts to ensure such vendors’ controls meet our standards are inadequate, our vendors fail to perform their servicesaccurately or timely, the exchange of information between us and our vendors is imperfect, or our vendors suffer financial or reputational distress, any errors,misconduct, or discontinuation of services that result could have a material adverse effect on our business, reputation, results of operations, or financial condition.

From time to time, our administrative and operational practices may fail to timely and completely identify all of the property that we are legally required toescheat to a variety of jurisdictions as unclaimed property. As a result, we may be subject to unexpected charges, reserve strengthening, and expenses, as well asregulatory examinations, penalties or other fines. Each of these affects may harm our reputation or regulatory relationships that may harm our business, financialcondition, or results of operations.

Our practices and procedures are evaluated periodically and from time to time may limit our efforts to contact all of our customers, which may result indelayed, untimely, or missed customer payments that may have a material adverse effect on the Company, including reputational harm.

We are subject to risks related to fraud, including fraud committed by our associates, as well as fraud through claims and other processes. Our policies andprocedures may be ineffective in preventing, detecting or mitigating fraud and other illegal or improper acts, which could have a material adverse effect on ourbusiness, reputation, financial condition, or results of operations.

If our policies and practices to attract, motivate and retain employees, to develop talent, and to plan for management succession are not effective, our business,results of operations, and financial condition could be adversely affected.

We cannot be certain that we will not identify control deficiencies or material weaknesses in the future. If we identify future control deficiencies or materialweaknesses, these may lead to additional adverse effects on our business, our reputation, our results of operations, and the market price of our common stock.

See “Business — Regulation — Unclaimed Property.”

AFailureinOurCybersecurityorOtherInformationSecuritySystemsorOurDisasterRecoveryPlans,orThoseofOurSuppliers,CouldResultinaLossorDisclosureofConfidentialInformation,DamagetoOurReputationandImpairmentofOurAbilitytoConductBusinessEffectively

We rely on the effective operation of our and our suppliers’ computer systems throughout our business for a variety of functions, including processing claims,transactions and applications, providing information to customers and distributors, performing actuarial analyses and maintaining financial records. We also retainconfidential and proprietary information on our and our suppliers’ computer systems, and we rely on sophisticated technologies to maintain the security of thatinformation. Our and our suppliers’ computer systems are subject to computer viruses or other malicious codes, unauthorized or fraudulent access, socialengineering, phishing, human error, cyberattacks or other computer-related penetrations, and such threats have increased over recent periods. The administrativeand technical controls and other preventive actions we take to reduce the risk of cyber-incidents and protect our information technology may be insufficient toprevent physical and electronic break-ins, cyber-attacks, compromised credentials, fraud, other security breaches or other unauthorized access to our and oursuppliers’ computer systems. In some cases, such cyber-incidents may not be immediately detected. Such incidents may impede or interrupt our businessoperations and could adversely affect our business, reputation, financial condition and results of operations.

In the event of a disaster such as a natural catastrophe, epidemic, industrial accident, blackout, computer virus, terrorist attack, cyberattack or war,unanticipated problems with our and our suppliers’ disaster recovery systems could have a material adverse impact on our ability to conduct business and on ourresults of operations and financial position, particularly if those problems affect our and our suppliers’ computer-based data processing, transmission, storage andretrieval systems and destroy valuable data. In addition, if a significant number of our managers, or associates generally, are unavailable following a disaster, ourability to effectively conduct business could be severely compromised. These interruptions also may interfere with our suppliers’ ability to provide goods andservices and our associates’ ability to perform their job responsibilities.

The failure of our and our suppliers’ computer systems or our and our suppliers’ disaster recovery plans for any reason, or any such failure on the part ofvendors, distributors, and other third parties that provide operational or information technology services to us, could cause significant interruptions in ouroperations and result in a failure to maintain the security, confidentiality or privacy of sensitive data, including personal information relating to our customers. Sucha failure could harm our reputation, subject us to regulatory investigations and sanctions, expose us to legal claims, lead to a loss of customers and revenues andotherwise adversely affect our business and financial results. Insurance for cyber liability, operational and other risks relating to our business and systems may notbe sufficient to protect us against such losses or may become less readily available or more expensive, which could adversely affect our results of operations. Inaddition, increased scrutiny of cybersecurity issues by regulators, including new laws or regulations, could result in increased compliance costs.

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There can be no assurance that our information security policies and systems in place can prevent unauthorized access, use or disclosure of confidentialinformation, including nonpublic personal information, nor can we be certain that we will be able to reliably access all of the documents and records in theinformation storage systems we use, whether electronic or physical. In some circumstances, we may fail to obtain or maintain all of the records we need toaccurately and timely administer, and establish appropriate reserves for benefits and claims with respect to, our products, which failure could adversely affect ourbusiness, reputation, results of operations or our financial condition.

We are continuously evaluating and enhancing systems and creating new systems and processes as our business depends on our ability to maintain andimprove our technology systems. Due to the complexity and interconnectedness of our systems and processes, these changes, as well as changes designed to updateand enhance our protective measures to address new threats, increase the risk of a system or process failure or the creation of a gap in our security measures. Anysuch failure or gap could adversely affect our business, reputation, results of operations or financial condition.

AnyFailuretoProtecttheConfidentialityofClientInformationCouldAdverselyAffectOurReputationorResultinLegalorRegulatoryPenalties

If we or our suppliers fail to maintain adequate internal controls or if our or our suppliers’ associates fail to comply with relevant policies and procedures,misappropriation or intentional or unintentional inappropriate disclosure or misuse of our clients’ confidential personal information could occur. Such internalcontrol inadequacies or non-compliance could materially damage our reputation or lead to civil or criminal penalties, which, in turn, could have a material adverseeffect on our business, financial condition and results of operations. Increased scrutiny of privacy issues by regulators, including new laws or regulations, couldresult in increased compliance costs. In addition, any inquiries from U.S. state, federal or other regulators regarding the use of “big data” techniques could result inharm to our reputation, and any limitations could have a material impact on our business, financial condition and results of operations.

See “Business — Regulation — Cybersecurity and Privacy Regulation.”

ChangesinAccountingStandardsMayAdverselyAffectOurFinancialStatements

From time to time, we are required to adopt new or revised accounting standards issued by recognized authoritative bodies, including the Financial AccountingStandards Board (the “FASB”) and the IFRS Foundation. We cannot always meaningfully assess the effects of such new or revised accounting standards on ourfinancial statements. Our adoption of future accounting standards could have a material adverse effect on our financial condition and results of operations.

See Note 1 of the Notes to the Consolidated Financial Statements.

OurAssociatesMayTakeExcessiveRisks,WhichCouldNegativelyAffectOurFinancialConditionandBusiness

The associates who conduct our business, including executive officers and other members of management, sales managers, investment professionals, productmanagers, sales agents, wholesalers, underwriters, and other associates, may take excessive risks in a wide variety of business decisions, including settingunderwriting guidelines and standards, determining claims, designing and pricing products, determining what assets to purchase for investment and when to sellthem, evaluating business opportunities, and other decisions. The design and implementation of our compensation programs and practices may not be effective indeterring our associates from taking excessive risks, and our controls and procedures may not be sufficient to monitor associates’ business decisions, preventexcessive risk-taking, or prevent associate misconduct. If our associates take excessive risks, the impact of those risks could have a material adverse effect on ourreputation, financial condition and business operations.

WeMayExperienceDifficultyinMarketingandDistributingProductsThroughOurDistributionChannels

Third-party distributors, through whom we primarily distribute our products, may suspend, alter, reduce or terminate their distribution relationships with us forvarious reasons, including changes in our distribution strategy, adverse developments in our business, adverse rating agency actions or concerns about market-related risks. There can be no assurance that the terms of our agreements with third-party distributors will remain acceptable to us or such third parties. Keydistribution partners may merge, change their business models in ways that affect how our products are sold, or terminate their distribution contracts with us, andnew distribution channels could emerge, and such developments could adversely impact the effectiveness of our distribution efforts. Consolidation of distributorsand other industry changes may also increase the likelihood that distributors will try to renegotiate the terms of any existing selling agreements to terms lessfavorable to us. Interruptions or changes to our relationships with distributors could materially hinder our ability to market our products and could have a materialadverse effect on our business, operating results and financial condition.

We may not be able to monitor or control the manner in which unaffiliated firms or agents distribute our products. If our products are distributed by such firmsor agents in an inappropriate manner, or to customers for whom they are unsuitable, we may be subject to reputational harm, regulatory fines and other harm to ourbusiness.

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ChangesinOurAssumptionsUsedforOurPensionandOtherPostretirementBenefitPlansMayResultinIncreasedExpensesandReduceOurProfitability

Changes in our assumptions regarding discount rates, rates of return on plan assets, mortality rates, compensation levels and medical inflation may adverselyaffect our estimates of pension and other postretirement benefit plan experience, which could result in increased expenses and reduce our profitability.

See Note 17 of the Notes to the Consolidated Financial Statements.

WeMayNotbeAbletoProtectOurIntellectualPropertyandMaybeSubjecttoInfringementClaims

Contractual rights with third parties and copyright, trademark, patent and trade secret laws may be insufficient to prevent third parties from infringing on ormisappropriating our intellectual property. We may have to litigate to enforce and protect our copyrights, trademarks, patents, trade secrets and know-how or todetermine their scope, validity or enforceability. This may result in a significant diversion of resources, and our efforts may not prove successful. The inability tosecure or protect our intellectual property assets could harm our reputation and have a material adverse effect on our business and our ability to compete with otherinsurers and financial institutions.

In addition, we may be subject to claims by third parties for:

• patent, trademark or copyright infringement;

• breach of patent, trademark or copyright license usage rights; or

• misappropriation of trade secrets.

Any such claims or resulting litigation could result in significant expense and liability for damages. If we are found to have infringed or misappropriated athird-party patent or other intellectual property right, we could in some circumstances be enjoined from providing certain products or services to our customers orfrom utilizing and benefiting from certain patents, copyrights, trademarks, trade secrets or licenses. Alternatively, we could be required to enter into costlylicensing arrangements with third parties or implement a costly alternative. Any of these scenarios could harm our reputation and have a material adverse effect onour business and results of operations.

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Risks Related to Acquisitions, Dispositions or Other Structural Changes

WeCouldFaceDifficulties, UnforeseenLiabilities, Asset Impairments or RatingActionsArisingfromBusinessAcquisitionsorIntegratingandManagingGrowthofSuchBusinesses,DispositionsofBusinesses,orLegalEntityReorganizations

Acquisitions and dispositions of businesses, joint ventures, and other structural changes expose us to a number of risks arising from, among other factors:

• potential difficulties achieving projected financial results, including the costs and benefits of integration or deconsolidation, due to macroeconomic,business, demographic, actuarial, regulatory, or political factors;

• unforeseen liabilities or asset impairments;

• the scope and duration of rights to indemnification for losses, and the recoverability of such indemnification;

• the use of capital that could be used for other purposes;

• liquidity requirements;

• reactions of ratings agencies, shareholders, policyholders and contractholders, distributors, suppliers and other contractual counterparties;

• regulatory requirements that could impact our operations or capital requirements;

• changes in statutory or U.S. GAAP accounting principles, practices or policies;

• dedication of management resources that could otherwise be deployed to other business, or distraction of key personnel from maximizing businessvalue;

• providing or receiving transition services that may disrupt operations or impose liabilities or restrictions on us;

• loss of key personnel or difficulties recruiting personnel;

• loss of customers;

• loss of distribution resources or suppliers;

• inefficiencies as we integrate operations and address differences in cultural, management, information, compliance and financial systems andprocedures; and

• impacts on internal controls and procedures.

The success with which we are able to conduct business through joint ventures, including exclusive or semi-exclusive distribution relationships, will dependon our ability to manage a variety of issues, including the following:

• Entering into joint ventures with other companies or government sponsored entities in various international markets, including joint ventures wherewe have a lesser degree of control over the business operation, may expose us to additional operational, financial, legal or compliance risks.

• Dependence on a joint venture counterparty for capital, product distribution, local market knowledge, or other resources, or dependence on a jointventure counterparty due to limits on our ownership levels or distribution exclusivity requirements under local laws or regulations, may reduce ourcontrol over, our financial returns from, or the value of a joint venture.

• If we are unable to effectively cooperate with joint venture counterparties, or a joint venture counterparty fails to meet its obligations under the jointventure arrangement, encounters financial difficulty, or elects to alter, modify or terminate the relationship, we may be unable to exercisemanagement control or influence over these joint venture operations and our ability to achieve our objectives and our results of operations may benegatively impacted, thereby impairing our investment.

Reorganizing or consolidating the legal entities through which we conduct business may raise similar risks. The success with which we are able to realizebenefits from legal entity reorganizations will also depend on our ability to manage a variety of issues, including regulatory approvals, modification of ouroperations and changes to our investment portfolios or derivatives hedging activities.

Any of these risks, if realized, could prevent us from achieving the benefits we expect or could otherwise have a material adverse effect on our business,results of operations or financial condition.

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See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Acquisitions and Dispositions.”

WeAreSubjecttoRisksRelatedtoOurSeparationfromandContinuingRelationshipwithBrighthouse

We remain subject to certain risks related to our separation from and continuing relationship with Brighthouse. There can be no assurance that we will realizeany or all of the expected strategic, financial, operational or other benefits of the separation of Brighthouse, and a failure to realize expected benefits of theseparation could result in a material adverse effect on our business, results of operations and financial condition. Our agreements with Brighthouse, and the taxtreatment of the separation, also expose us to risk. In addition, we cannot guarantee that Brighthouse will be successful as a standalone entity. If Brighthouse is notsuccessful, plaintiffs could assert a variety of claims against us, which could have a material adverse effect on our business, financial condition or results ofoperations.

See:

• “Business — Regulation — Brighthouse Separation Tax Treatment” and

• Note 3 of the Notes to the Consolidated Financial Statements.

Governance Risks

MetLife, Inc.’s Board of Directors May Influence the Outcome of Stockholder Votes on Many Matters Due to the Voting Provisions of the MetLifePolicyholderTrust

As a result of the voting provisions of the MetLife Policyholder Trust and the number of shares held by it, the Board of Directors may be able to influence theoutcome of votes on matters submitted to a vote of stockholders, excluding certain fundamental corporate actions, so long as the Trust holds a substantial numberof shares of common stock. Additionally, if a vote concerns certain fundamental corporate actions, the trustee will vote all of the shares of common stock held bythe Trust in proportion to instructions it receives from Trust beneficiaries, which will give disproportionate weight to the instructions actually given by Trustbeneficiaries.

The winding up of the Trust must commence within 90 days after we notify the trustee that the Trust holds 10% or less of MetLife’s outstanding commonstock. When the Trust is terminated and the shares of common stock then held in the Trust are distributed to the respective Trust beneficiaries, we may incur costsrelated to the termination of the Trust, such as regulatory filings and mailings to Trust beneficiaries or others, and afterward we may incur costs related to anincrease in the number of shareholders, such as increased mailing and proxy solicitation expenses. After such a distribution, the addition of the respective Trustbeneficiaries to our shareholder base with full voting rights may have a significant impact on matters brought to a stockholder vote and other aspects of ourcorporate governance.

State Laws, Federal Laws, and Our Certificate of Incorporation Our By-Laws May Delay, Deter or Prevent Takeovers and Business Combinations thatStockholdersMightConsiderinTheirBestInterests

State laws, federal laws and our certificate of incorporation and by-laws may delay, deter or prevent a takeover attempt that stockholders might consider intheir best interests. For instance, such restrictions may prevent stockholders from receiving the benefit from any premium over the market price of MetLife, Inc.’scommon stock offered by a bidder in a takeover context. Even in the absence of a takeover attempt, the existence of these provisions may adversely affect theprevailing market price of MetLife, Inc.’s common stock if they are viewed as discouraging takeover attempts in the future.

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Any person seeking to acquire a controlling interest in us would face various regulatory obstacles, including:

• applicable U.S. state or foreign insurance laws and regulations that may delay or impede a business combination involving us by prohibiting an entityfrom acquiring control of an insurance company without the prior approval of its domestic insurance regulator;

• if the acquiring entity is a bank or non-bank SIFI, Dodd-Frank provisions that restrict or impede consolidations, mergers and acquisitions by systemicallysignificant firms;

• provisions of the Investment Company Act that require approval by the contract owners of our variable contracts in order to effectuate a change of controlof any affiliated investment adviser to a mutual fund underlying our variable contracts;

• FINRA approval requirements for a change of control of any registered broker-dealer;

• provisions of the Delaware General Corporation Law that may affect the ability of an “interested stockholder” to engage in certain business combinations;and

• applicable antitrust and competition laws.

In addition, provisions of MetLife, Inc.’s certificate of incorporation and by-laws may delay, deter or prevent a takeover attempt that stockholders mightconsider in their best interests or may otherwise adversely affect prevailing market prices for MetLife, Inc.’s common stock, including a prohibition on the callingof special meetings or action by written consent by stockholders and advance notice procedures for the nomination of candidates to the Board of Directors andconsideration of stockholder proposals. Additionally, stockholders may change MetLife, Inc.’s corporate governance through amendments to MetLife, Inc.’scertificate of incorporation or by-laws in ways that make it more difficult for the Board of Directors to protect stockholders’ interests, for example, if the Board ofDirectors is presented with an acquisition proposal that undervalues the Company.

Item 1B. Unresolved Staff Comments

MetLife has no unresolved comments from the SEC staff regarding its periodic or current reports under the Exchange Act.

Item 2. Properties

As of December 31, 2018 , we leased our headquarters building located at 200 Park Avenue, New York, New York. Including our headquarters, throughoutthe U.S. we own eight buildings and have approximately 112 leases used in support of all segments, as well as Corporate & Other.

Also, as of December 31, 2018 , we owned three properties and have approximately 169 leases in Japan, which are used primarily by our Asia segment.Excluding the U.S. and Japan, we own approximately 112 properties and have approximately 986 leases in various countries used primarily in support of our Asia,Latin America, and EMEA segments, as well as Corporate & Other.

We believe our properties are adequate and suitable for our business as currently conducted, and are adequately maintained. The above properties do notinclude properties we own for investment-only purposes.

Item 3. Legal Proceedings

See Note 20 of the Notes to the Consolidated Financial Statements.

Item 4. Mine Safety Disclosures

Not applicable.

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Part II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

IssuerCommonEquity

MetLife, Inc.’s common stock, par value $0.01 per share, began trading on the New York Stock Exchange under the symbol “MET” on April 5, 2000.

At February 14 , 2019, there were 75,017 stockholders of record of our common stock.

See Item 12 for information about our equity compensation plans.

IssuerPurchasesofEquitySecurities

Purchases of MetLife, Inc. common stock made by or on behalf of MetLife, Inc. or its affiliates during the quarter ended December 31, 2018 are set forthbelow:

Period (a) Total Number ofShares Purchased (1)

(b) Average PricePaid per Share

(c) Total Number of SharesPurchased as Part of Publicly

Announced Plansor Programs

(d) Maximum Number (orApproximate Dollar Value) of

Shares that May YetBe Purchased Under the

Plans or Programs (2)October 1 - October 31, 2018 — — — $470,341,462November 1 - November 30, 2018 13,447,275 $44.40 13,447,275 $1,873,338,798December 1 - December 31, 2018 14,979,095 $40.26 14,978,937 $1,270,341,498Total 28,426,370 28,426,212 __________________

(1) Except for the foregoing, there were no shares of MetLife, Inc. common stock repurchased by MetLife, Inc. During the periods October 1 through October31, 2018, November 1 through November 30, 2018 and December 1 through December 31, 2018, separate account index funds purchased 0 shares, 0 sharesand 158 shares, respectively, of MetLife, Inc. common stock on the open market in non-discretionary transactions.

(2) In November 2018, MetLife, Inc. announced that its Board of Directors authorized $2.0 billion of common stock repurchases. At December 31, 2018 ,MetLife, Inc. had $1.3 billion of common stock repurchases remaining under the authorization. For more information on common stock repurchases, see“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company —Liquidity and Capital Uses — Common Stock Repurchases,” “Risk Factors — Capital Risks — Legal and Regulatory Restrictions May Prevent Us fromPaying Dividends and Repurchasing Our Stock at the Level We Wish” and Notes 15 and 22 of the Notes to the Consolidated Financial Statements.

CommonStockPerformanceGraph

The graph and table below compare the total return on our common shares with the total return on the S&P 500, S&P 500 Insurance, and S&P 500 Financialsindices, respectively, for the five-year period ended on December 31, 2018 . The graph and table show the total return on a hypothetical $100 investment in ourcommon shares and in each index, respectively, on December 31, 2013, including the reinvestment of all dividends. The graph and table below shall not be deemedto be “soliciting material” or to be “filed,” or to be incorporated by reference in future filings with the SEC, or to be subject to the liabilities of Section 18 of theExchange Act, except to the extent that we specifically incorporate it by reference into a document filed under the Securities Act or the Exchange Act.

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As of December 31, 2013 2014 2015 2016 2017 2018MetLife, Inc. common stock $ 100.00 $ 102.85 $ 94.34 $ 109.17 $ 118.46 $ 99.74

S&P 500 100.00 113.69 115.26 129.05 157.22 150.33

S&P 500 Insurance 100.00 108.29 110.81 130.29 151.38 134.42

S&P 500 Financials 100.00 115.20 113.44 139.31 170.21 148.03

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Item 6. Selected Financial Data

The following selected financial data has been derived from the Company’s audited consolidated financial statements. The statement of operations data for theyears ended December 31, 2018, 2017 and 2016, and the balance sheet data at December 31, 2018 and 2017 have been derived from the Company’s auditedconsolidated financial statements included elsewhere herein. The statement of operations data for the years ended December 31, 2015 and 2014, and the balancesheet data at December 31, 2016, 2015 and 2014 have been derived from the Company’s audited consolidated financial statements not included herein. Theselected financial data set forth below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results ofOperations” and the audited consolidated financial statements and related notes included elsewhere herein.

Years Ended December 31,

2018 2017 2016 2015 2014 (In millions)Statement of Operations Data Revenues Premiums $ 43,840 $ 38,992 $ 37,202 $ 36,403 $ 36,970Universal life and investment-type product policy fees 5,502 5,510 5,483 5,570 5,824Net investment income 16,166 17,363 16,790 16,205 18,158Other revenues 1,880 1,341 1,685 1,927 1,962Net investment gains (losses) (298) (308) 317 609 338Net derivative gains (losses) 851 (590) (690) 629 722

Total revenues 67,941 62,308 60,787 61,343 63,974

Expenses Policyholder benefits and claims 42,656 38,313 36,358 35,144 35,393Interest credited to policyholder account balances 4,013 5,607 5,176 4,415 5,726Policyholder dividends 1,251 1,231 1,223 1,356 1,353Other expenses 13,714 13,621 13,749 14,777 14,619

Total expenses 61,634 58,772 56,506 55,692 57,091Income (loss) from continuing operations before provision for income tax 6,307 3,536 4,281 5,651 6,883

Provision for income tax expense (benefit) 1,179 (1,470) 693 1,590 1,936Income (loss) from continuing operations, net of income tax 5,128 5,006 3,588 4,061 4,947

Income (loss) from discontinued operations, net of income tax (1) — (986) (2,734) 1,324 1,389Net income (loss) 5,128 4,020 854 5,385 6,336

Less: Net income (loss) attributable to noncontrolling interests 5 10 4 12 27Net income (loss) attributable to MetLife, Inc. 5,123 4,010 850 5,373 6,309

Less: Preferred stock dividends 141 103 103 116 122 Preferred stock repurchase premium — — — 42 —

Net income (loss) available to MetLife, Inc.’s common shareholders $ 4,982 $ 3,907 $ 747 $ 5,215 $ 6,187

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Years Ended December 31,

2018 2017 2016 2015 2014EPS Data Income (loss) from continuing operations, net of income tax, available to

MetLife, Inc.’s common shareholders per common share: Basic $ 4.95 $ 4.57 $ 3.16 $ 3.48 $ 4.25Diluted $ 4.91 $ 4.53 $ 3.13 $ 3.44 $ 4.20

Income (loss) from discontinued operations, net of income tax, per commonshare (1): Basic $ — $ (0.92) $ (2.48) $ 1.19 $ 1.23Diluted $ — $ (0.91) $ (2.46) $ 1.18 $ 1.22

Net income (loss) available to MetLife, Inc.’s common shareholders percommon share: Basic $ 4.95 $ 3.65 $ 0.68 $ 4.67 $ 5.48Diluted $ 4.91 $ 3.62 $ 0.67 $ 4.62 $ 5.42

Cash dividends declared per common share $ 1.660 $ 1.600 $ 1.575 $ 1.475 $ 1.325

December 31,

2018 2017 2016 2015 2014 (In millions)Balance Sheet Data Assets of disposed subsidiary (1) $ — $ — $ 216,983 $ 216,437 $ 219,937Separate account assets $ 175,556 $ 205,001 $ 195,578 $ 187,152 $ 194,072Total assets $ 687,538 $ 719,892 $ 898,764 $ 877,912 $ 902,322Policyholder liabilities and other policy-related balances (2) $ 388,107 $ 378,810 $ 355,151 $ 342,047 $ 349,651Short-term debt $ 268 $ 477 $ 242 $ 100 $ 100Long-term debt $ 12,829 $ 15,686 $ 16,441 $ 17,936 $ 16,108Collateral financing arrangement $ 1,060 $ 1,121 $ 1,274 $ 1,342 $ 1,399Junior subordinated debt securities $ 3,147 $ 3,144 $ 3,169 $ 3,194 $ 3,193Liabilities of disposed subsidiary (1) $ — $ — $ 202,707 $ 204,314 $ 208,341Separate account liabilities $ 175,556 $ 205,001 $ 195,578 $ 187,152 $ 194,072Accumulated other comprehensive income (loss) $ 1,722 $ 7,427 $ 5,366 $ 4,767 $ 10,714Total MetLife, Inc.’s stockholders’ equity $ 52,741 $ 58,676 $ 67,531 $ 68,098 $ 72,208Noncontrolling interests $ 217 $ 194 $ 171 $ 470 $ 507

Years Ended December 31,

2018 2017 2016 2015 2014Other Data (3) Return on MetLife, Inc.’s common stockholders’ equity 9.6% 6.3% 1.0% 7.7% 9.5%__________________

(1) See Note 3 of the Notes to the Consolidated Financial Statements.

(2) Policyholder liabilities and other policy-related balances include future policy benefits, policyholder account balances, other policy-related balances,policyholder dividends payable and the policyholder dividend obligation.

(3) Return on MetLife, Inc.’s common stockholders’ equity is defined as net income (loss) available to MetLife, Inc.’s common shareholders divided byMetLife, Inc.’s average common stockholders’ equity.

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Index to Management’s Discussion and Analysis of Financial Condition and Results of Operations

PageForward-Looking Statements and Other Financial Information 67Executive Summary 67Industry Trends 73Summary of Critical Accounting Estimates 79Economic Capital 87Acquisitions and Dispositions 87Results of Operations 89Effects of Inflation 116Investments 117Derivatives 134Off-Balance Sheet Arrangements 136Insolvency Assessments 137Policyholder Liabilities 137Liquidity and Capital Resources 145Adoption of New Accounting Pronouncements 166Future Adoption of New Accounting Pronouncements 166Non-GAAP and Other Financial Disclosures 166Subsequent Events 171

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Forward-Looking Statements and Other Financial Information

For purposes of this discussion, “MetLife,” the “Company,” “we,” “our” and “us” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, itssubsidiaries and affiliates. This discussion should be read in conjunction with “Note Regarding Forward-Looking Statements,” “Risk Factors,” “Selected FinancialData,” “Quantitative and Qualitative Disclosures About Market Risk” and the Company’s consolidated financial statements included elsewhere herein.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations may contain or incorporate by reference information thatincludes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. See “Note Regarding Forward-Looking Statements” for cautionary language regarding forward-looking statements.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations includes references to our performance measures, adjustedearnings and adjusted earnings available to common shareholders, that are not based on GAAP. See “— Non-GAAP and Other Financial Disclosures” fordefinitions and a discussion of these measures, and “— Results of Operations” for reconciliations of historical non-GAAP financial measures to the most directlycomparable GAAP measures.

Executive Summary

Overview

MetLife is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. MetLife isorganized into five segments: U.S.; Asia; Latin America; EMEA; and MetLife Holdings. In addition, the Company reports certain of its results of operations inCorporate & Other. See “Business — Segments and Corporate & Other” and Note 2 of the Notes to the Consolidated Financial Statements for further informationon the Company’s segments and Corporate & Other. Management continues to evaluate the Company’s segment performance and allocated resources and mayadjust related measurements in the future to better reflect segment profitability.

U.S.TaxReform

In December 2017, U.S. Tax Reform was signed into law. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which thelaw was enacted. As a result, the Company recognized the tax effects of U.S. Tax Reform for the year ended December 31, 2017. While the Company recorded areasonable estimate of the tax effects of U.S. Tax Reform in the period of enactment, its income tax accounting was not complete due to uncertainties that existedat the time. Accordingly, certain U.S. Tax Reform amounts were revised in the Company’s consolidated financial statements for the year ended December 31,2018. In addition, given the complexities of U.S. Tax Reform, there still remain uncertainties surrounding aspects of the new law that may impact results in thefuture. See Note 18 of the Notes to the Consolidated Financial Statements for a further discussion of U.S. Tax Reform.

SeparationofBrighthouse

In August 2017, MetLife, Inc. completed the separation of Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”) through a distribution of96,776,670 shares of Brighthouse Financial, Inc. common stock to the MetLife, Inc. common shareholders (the “Separation”). For information regarding theSeparation, the Company’s 2018 sale of the f air value option (“FVO”) Brighthouse Financial, Inc. common stock (“FVO Brighthouse Common Stock”) , andongoing transactions between MetLife and Brighthouse, see Notes 3 and 12 of the Notes to the Consolidated Financial Statements.

CurrentYearHighlights

During the year ended December 31, 2018, overall sales increased compared to the year ended December 31, 2017 primarily from improved sales in our RISbusiness and in Japan . Positive net flows drove an increase in our investment portfolio and investment yields improved, however, interest credited rates werehigher. A favorable change in net derivative gains (losses) was primarily the result of changes in foreign currency exchange rates and interest rates . While U.S.Tax Reform positively impacted net income in both 2018 and 2017, the impact in 2017 was significantly larger. In addition, our annual actuarial assumption reviewnegatively impacted results when compared to 2017. Our results for 2017 included a loss from the operations of Brighthouse that is reflected in discontinuedoperations.

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The following represents segment level results and percentage contributions to total segment level adjusted earnings available to common shareholders for theyear ended December 31, 2018 :

_______________

(1) Excludes Corporate & Other adjusted loss available to common shareholders of $ 704 million .

(2) Consistent with GAAP guidance for segment reporting, adjusted earnings is our GAAP measure of segment performance. For additional information, seeNote 2 of the Notes to the Consolidated Financial Statements.

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YearEndedDecember31,2018ComparedwiththeYearEndedDecember31,2017

ConsolidatedResults-HighlightsNet income (loss) available to MetLife,Inc.’s common shareholders up $1.1 billion: • Favorable change in net derivative gains

(losses) of $1.4 billion ($1.1 billion, netof income tax)

• Favorable change in results from divested

businesses of $936 million ($650 million,net of income tax) included in continuingoperations

• Favorable change in income (loss) from

discontinued operations, net of incometax, of $986 million

• Net tax-related benefit in 2017 of $1.3

billion due to U.S. Tax Reform • Net unfavorable change from our annual

actuarial assumption reviews of $395million ($297 million, net of income tax)

• Adjusted earnings available to common

shareholders up $1.2 billion

(1) See “— Results of Operations — Consolidated Results” and “— Non-GAAP and Other Financial Disclosures” for reconciliations and definitions of non-GAAP financial measures.

ConsolidatedResults-AdjustedEarningsHighlightsAdjusted earnings available to common shareholders up $1.2 billion: • The primary drivers of the increase in adjusted earnings were higher net investment income due to a larger asset base and higher

investment yields, the favorable impact of U.S. Tax Reform, other favorable tax items, favorable refinements to DAC and certaininsurance-related liabilities, lower expenses and favorable underwriting, partially offset by higher interest credited expenses and thenet unfavorable change from our annual actuarial assumption review.

• Our results for the year ended December 31, 2018 included the following:

• a $349 million benefit from the IRS audit settlement related to the tax treatment of a wholly-ownedU.K. investment subsidiary of MLIC, which was comprised of a $168 million tax benefit and a $181million interest benefit

• favorable impact from U.S. Tax Reform of $179 million, which includes a $78 million charge

related to a revision in the estimate from the enactment of this reform

• favorable reserve adjustment of $62 million, net of income tax, relating to certain variable annuity

guarantees assumed from a former joint venture in Japan

• a $37 million, net of income tax, favorable net insurance adjustment resulting from reserve and DAC

modeling improvements in our individual disability insurance business

• expenses associated with our previously announced unit cost initiative of $284 million, net of income

tax

• a $63 million, net of income tax, charge due to a current period increase in our incurred but notreported(“IBNR”) life reserves, reflecting enhancements to our processes related to potential claims

• a $60 million, net of income tax, increase in litigation reserves • unfavorable impact from our annual actuarial assumption review of $42 million, net of income tax• Our results for 2017 included the following:

• a tax charge of $298 million related to U.S. Tax Reform

• net tax-related charges of $139 million consisting of (i) a $180 million net tax charge related to therepatriation of approximately $3.0 billion of cash following the post-Separation review of our capitalneeds, partially offset by a tax benefit associated with dividends from our non-U.S. operations, and(ii) a $41 million net tax-related benefit from the finalization of certain tax audits

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• expenses associated with our previously announced unit cost initiative of $102 million, net of income tax

• a $73 million, net of income tax, charge for expenses incurred related to a guaranty fund assessment for Penn Treaty Network America Insurance Company

(“Penn Treaty”) • a $90 million, net of income tax, charge to increase certain RIS policy reserves • a favorable reserve adjustment of $55 million, net of income tax, resulting from modeling improvements in the reserving process for our life business • a charge of $36 million, net of income tax, for lease impairments • a benefit of $12 million, net of income tax, related to a refinement to prior period reinsurance receivables in Australia

For a more in-depth discussion of our consolidated results, see “— Results of Operations — Consolidated Results,” “— Results of Operations —Consolidated Results — Adjusted Earnings” and “— Results of Operations — Segment Results and Corporate & Other.”

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YearEndedDecember31,2017ComparedwiththeYearEndedDecember31,2016

ConsolidatedResults-HighlightsNet income (loss) available to MetLife, Inc.’scommon shareholders up $3.2 billion: • Lower losses from discontinued

operations, net of income tax, of $1.7billion

• Net tax-related benefit of $1.3 billion due

to U.S. Tax Reform • Unfavorable change in divested businesses

of $861 million ($618 million, net ofincome tax)

• Unfavorable change in net investment

gains (losses) of $625 million ($406million, net of income tax)

• Adjusted earnings available to common

shareholders up $202 million

(1) See “— Results of Operations — Consolidated Results” and “— Non-GAAP and Other Financial Disclosures” for reconciliations and definitions of non-GAAP financial measures.

ConsolidatedResults-AdjustedEarningsHighlightsAdjusted earnings available to common shareholders up $202 million:

• Results of operations positively impacted by annuities reinsurance activity with Brighthouse, the impact of 2017 and 2016refinements made to DAC and certain insurance-related liabilities and the impact in both 2017 and 2016 of our annual actuarialassumption review, partially offset by the unfavorable impact of U.S. Tax Reform and other tax items

• Our results for 2017 included the following: • a tax charge of $298 million related to U.S. Tax Reform

• net tax charges of $139 million consisting of (i) a $180 million net tax charge related to the repatriationof approximately $3.0 billion of cash following the post-Separation review of our capital needs,partially offset by a tax benefit associated with dividends from our non-U.S. operations, and (ii) a $41million tax benefit from the finalization of certain tax audits

• expenses associated with our previously announced unit cost initiative of $102 million, net of income

tax

• a $73 million, net of income tax, charge for expenses incurred related to a guaranty fund assessment for

Penn Treaty and increases in asbestos and litigation reserves • a $90 million, net of income tax, charge to increase certain RIS policy reserves

• a favorable reserve adjustment of $55 million, net of income tax, resulting from modeling

improvements in the reserving process for our life business • a charge of $36 million, net of income tax, for lease impairments

•a benefit of $12 million, net of income tax, related to a refinement to prior period reinsurancereceivables in Australia

• Our results for 2016 included the following:

• unfavorable reserve adjustments of $65 million, net of income tax, resulting from modeling

improvements in the reserving process • a $44 million, net of income tax, charge related to an adjustment to reinsurance receivables in Australia

• tax benefit of $25 million related to a change in tax rate in Japan, which includes a benefit of $20

million that pertains to prior periods • a $23 million, net of income tax, charge for an increase in litigation reserves

• tax charge in Chile of $12 million as a result of tax reform legislation, which includes a charge of $10

million that pertains to prior periods

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For a more in-depth discussion of our consolidated results, see “— Results of Operations — Consolidated Results,” “— Results of Operations —Consolidated Results — Adjusted Earnings” and “— Results of Operations — Segment Results and Corporate & Other.”

ConsolidatedCompanyOutlook

Our enterprise strategy is founded on the principle of One MetLife, where digital and simplified are the key enablers of our four strategic cornerstones: (i)optimizing value and risk by focusing on our businesses with higher internal rates of return, lower capital intensity, and maximum cash generation, (ii) drivingoperational excellence, by transforming into a high-performance operating company with a competitive cost structure, (iii) enabling our distribution channels todrive efficiency and productivity through digitalization and improved customer persistency, and (iv) undertaking a targeted approach to find the right solutions forthe right customers through differentiated customer value propositions. This enterprise strategy has enhanced our ability to focus on the right markets, build cleardifferentiators, and continue to make the right investments to deliver shareholder value.

Post-Separation, we are well-positioned in less volatile and fee-based businesses; as a result, we expect our results to be less sensitive to interest rates.Assuming interest rates follow the observable forward yield curves as of the year ended December 31, 2018, we expect the average ratio of free cash flow toadjusted earnings over the two-year period of 2019 and 2020 to be 65% to 75%, assuming a 10-year U.S. Treasury rate between 2.0% and 4.5%. We believe thatfree cash flow is a key determinant of common stock dividends and common stock repurchases.

In light of the move away from a sustained low interest rate environment, compounding business growth and our expense initiative, we are targeting anadjusted return on equity, excluding accumulated other comprehensive income (“AOCI”) other than foreign currency translation adjustments (“FCTA”), of 12% to14% over the near-term. This target reflects our unit cost improvement program and the related initiative to invest $1.0 billion by 2020 to generate a pre-tax profitmargin improvement of $800 million, which represents an approximate 200 basis point decline in our direct expense ratio, excluding total notable items related todirect expenses and pension risk transfers, by 2020 from our 2015 baseline year.

A key element of our enterprise strategy is to return excess capital to common shareholders through dividends and stock repurchases. In 2018, we returned$5.7 billion of capital to common shareholders through common stock dividends and common stock repurchases. Common stock repurchases are subject to thediscretion of our Board of Directors and will depend upon our capital position, liquidity, financial strength and credit ratings, general market conditions, the marketprice of MetLife, Inc.’s common stock compared to management’s assessment of the stock’s underlying value, applicable regulatory approvals, and other legal andaccounting factors. Further, we plan to maintain a liquidity buffer of $3.0 to $4.0 billion of liquid assets at the holding companies.

When making these and other projections, we must rely on the accuracy of our assumptions about future economic and business conditions, which can beaffected by known and unknown risks and other uncertainties. Additional guidance from the U.S. Treasury, SEC or the FASB may require us to revise theseprojections in future periods.

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OtherKeyInformation

BasisofPresentation

Consolidation

Effective January 1, 2016, the Company converted its Japan operations from a fiscal year cutoff of November 30th to calendar year-end reporting. TheCompany reported the cumulative effect of the change in accounting principle in net income for the year ended December 31, 2016. See Notes 1 and 2 of theNotes to the Consolidated Financial Statements.

Discontinued Operations

The results of Brighthouse are reflected in the Company’s consolidated financial statements as discontinued operations and, therefore, are presented asincome (loss) from discontinued operations on the consolidated statements of operations. The reporting of discontinued operations had no impact on totalconsolidated net income (loss) for any of the years presented. See Note 3 of the Notes to the Consolidated Financial Statements for information ondiscontinued operations and ongoing transactions with Brighthouse.

Hurricanes

In 2018, Hurricanes Michael and Florence made landfall in the Florida Panhandle and North and South Carolina, respectively, causing loss of life andextensive property damage. As of December 31, 2018, MetLife’s Property & Casualty business recognized losses from these hurricanes of $27 million ($21million, net of income tax). Additional storm-related losses may be recorded in future periods as claims are received from insureds.

In 2017, Hurricanes Irma and Harvey made landfall in Florida and Texas, respectively, causing loss of life and extensive property damage. As of December31, 2017, MetLife’s Property & Casualty business recognized losses from these hurricanes of $65 million ($42 million, net of income tax).

ArgentinaHighlyInflationary

The inflation levels in Argentina have been elevated for several years. In the first half of 2018, Argentina’s reported inflation rates began to increasedramatically and the Argentine central bank significantly increased interest rates in an effort to combat inflation. Based on Argentina’s reported inflation ratesand trends, as of July 1, 2018, we designated Argentina as a highly inflationary economy for accounting purposes. The change to highly inflationary accountingdid not have a material impact on the Company’s consolidated financial statements for the year ended December 31, 2018.

Industry Trends

We continue to be impacted by the changing global financial and economic environment that has been affecting the industry.

FinancialandEconomicEnvironment

Our business and results of operations are materially affected by conditions in the global capital markets and the economy generally. Stressed conditions,volatility and disruptions in global capital markets, particular markets, or financial asset classes can have an adverse effect on us, in part because we have a largeinvestment portfolio and our insurance liabilities and derivatives are sensitive to changing market factors. See “Risk Factors — Economic Environment and CapitalMarkets Risks — Difficult Economic Conditions May Adversely Affect Our Business, Results of Operations and Financial Condition.”

We have market presence in numerous countries and, therefore, our business operations are exposed to risks posed by local and regional economic conditions.For example, MetLife is the largest provider of benefits to Mexican federal government personnel and public officials, however, the new administration ofPresident López Obrador of Mexico is implementing an austerity plan which, among other measures, has eliminated benefits such as major medical insurance andcontributions to additional savings benefit insurance for such individuals. See “Business — Regulation — Fiscal Measures” and “Risk Factors — EconomicEnvironment and Capital Markets Risks — Difficult Economic Conditions May Adversely Affect Our Business, Results of Operations and Financial Condition —Currency Exchange Rate Risk.” See “— Executive Summary — Other Key Information — Argentina Highly Inflationary” for further information regarding theimpact of Argentina’s highly inflationary economy on the Company’s consolidated financial statements.

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We are closely monitoring political and economic conditions that might contribute to global market volatility and impact our business operations, investmentportfolio and derivatives. For example, events following the U.K.’s referendum on June 23, 2016 and the uncertainties, including foreign currency exchange risks,associated with its planned withdrawal from the EU, have contributed to global market volatility. These factors could contribute to weakening Gross DomesticProduct growth, primarily in the U.K. and, to a lesser degree, in continental Europe. The magnitude and longevity of the potential negative economic impactswould depend on the detailed agreements reached by the U.K. and the EU as a result of the negotiations regarding future trade and other arrangements. See “—Investments — Current Environment — Selected Country and Sector Investments.” We are also monitoring the imposition of tariffs or other barriers tointernational trade, changes to international trade agreements, and their potential impacts on our business, results of operations and financial condition. In addition,the possibility of additional government shutdowns or a failure to raise the debt ceiling, due to a policy impasse or otherwise, could adversely impact our businessand liquidity. See “Business — Regulation — Cross-Border Trade” and “Business — Regulation — Fiscal Measures.” See also “Risk Factors — EconomicEnvironment and Capital Markets Risks — Difficult Economic Conditions May Adversely Affect Our Business, Results of Operations and Financial Condition”and “Risk Factors — Business Risks — The Global Nature of Our Operations Exposes Us to a Variety of Political, Legal, Operational, Economic and OtherRisks.”

Central banks around the world are using monetary policy to address regional economic conditions. For example, in the United States, citing a strengtheningeconomy, the Federal Reserve Board has continued along its stated path of balance sheet tapering and the Federal Reserve Board’s Federal Open MarketCommittee has continued to increase the federal funds rate, most recently in December 2018. Similarly, recognizing the economic recovery, the European CentralBank ended quantitative easing in December 2018 and left interest rates unchanged. In Japan, however, the Japanese government and the Bank of Japan aremaintaining stimulus measures in order to boost inflation expectations and achieve sustainable economic growth in Japan. Such measures include the imposition ofa negative rate on commercial bank deposits, continued government bond purchases and tax reform, including the lowering of the Japanese corporate tax rate andthe delay until October 2019 of an increase in the consumption tax to 10%. Going forward, Japan’s structural and demographic challenges may continue to limit itspotential growth unless reforms that boost productivity are put into place. Japan’s high public sector debt levels are mitigated by low refinancing risks. Furtheractions by central banks in the future may affect interest rates and risk markets in the U.S., Europe, Japan and other developed and emerging economies, and mayultimately result in market volatility. We cannot predict with certainty the effect of these actions or the impact on our business operations, investment portfolio orderivatives. See “— Investments — Current Environment.”

ImpactofaSustainedLowInterestRateEnvironment

During sustained periods of low interest rates, we may have to invest insurance cash flows and reinvest the cash flows we received as interest or return ofprincipal on our investments in lower yielding instruments. Moreover, borrowers may prepay or redeem the fixed income securities, mortgage loans and mortgage-backed securities in our investment portfolio with greater frequency in order to borrow at lower market rates. Therefore, some of our products expose us to the riskthat a reduction in interest rates will reduce the difference between the amounts that we are required to credit on contracts in our general account and the rate ofreturn we are able to earn on investments intended to support obligations under these contracts. This difference between interest earned and interest credited, ormargin, is a key metric for the management of, and reporting for, many of our businesses.

Our expectations regarding future margins are an important component impacting the amortization of certain intangible assets such as DAC and VOBA.Significantly lower margins may cause us to accelerate the amortization, thereby reducing net income in the affected reporting period. Additionally, lower marginsmay also impact the recoverability of intangible assets such as goodwill, require the establishment of additional liabilities or trigger loss recognition events oncertain policyholder liabilities. We review this long-term margin assumption, along with other assumptions, as part of our annual actuarial assumption review. See“— Results of Operations — Consolidated Results — Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017 — ActuarialAssumption Review and Certain Other Insurance Adjustments” for further information.

Some of our separate account products, including variable annuities, have certain minimum guarantee benefits. Declining interest rates increase the reserveswe need to set up to protect the guarantee benefits, thereby reducing net income in the affected reporting period.

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MitigatingActions

The Company continues to be proactive in its investment and interest crediting rate strategies, as well as its product design and product mix. To mitigate therisk of unfavorable consequences from the low interest rate environment in the U.S., the Company applies disciplined asset/liability management (“ALM”)strategies, including the use of interest rate derivatives. In some cases, the Company has entered into offsetting positions as part of its overall ALM strategy andto reduce volatility in net income. Lowering interest crediting rates on some products, or adjusting the dividend scale on traditional products, can help offsetdecreases in investment margins on some products. Our ability to lower interest crediting rates could be limited by competition, requirements to obtainregulatory approval, or contractual guarantees of minimum rates and may not match the timing or magnitude of changes in asset yields. As a result, our marginscould decrease or potentially become negative. We are able to limit or close certain products to new sales in order to manage exposures. Business actions, suchas shifting the sales focus to less interest rate sensitive products, can also mitigate this risk. In addition, the Company is well diversified across product,distribution, and geography. Certain of our businesses reported within our Latin America, EMEA, and Asia (exclusive of our Japan business) segments are notsignificantly interest rate or market sensitive; in particular, they have limited sensitivity to U.S. interest rates. The Company’s primary exposure within thesesegments is insurance risk. We expect our non-U.S. businesses to grow faster than our U.S. businesses and, over time, to become a larger percentage of our totalbusiness. As a result of the foregoing, the Company expects to be able to substantially mitigate the negative impact of a sustained low interest rate environmentin the U.S. on the Company’s profitability. Based on a near to intermediate term analysis of a sustained lower interest rate environment in the U.S., the Companyanticipates adjusted earnings will continue to increase, although at a slower growth rate.

LowInterestRateScenario

In formulating economic assumptions for its insurance contract assumptions, the Company uses projections that it makes regarding interest rates. Included inthese assumptions is the projection that the 10-year Treasury rate will rise from 2.69% at December 31, 2018 to 4.25% in 8 years, by 2026 and remains levelafterwards and that 10-year yields will reach 2.76%, 2.84% and 2.93% by December 31, 2019, 2020 and 2021, respectively. Also included is the projection thatthe three-month LIBOR rate will move from 2.81% at December 31, 2018 to 2.63%, 2.41% and 2.46% by December 31, 2019, 2020 and 2021, respectively. Thelow interest rate scenario reflects an assumed 100 basis point decline in all interest rate maturities compared to the base scenario from December 31, 2018through December 31, 2021 (the “Low Interest Rate Scenario”).

The following summarizes the impact of the Low Interest Rate Scenario on our U.S. dollar and non-U.S. dollar denominated positions. In addition, we haveincluded disclosure on the potential impact on 2019, 2020 and 2021 net income using the same Low Interest Rate Scenario on the mark-to-market of derivativepositions that do not qualify as accounting hedges.

Below is a summary of the rates we used for the Low Interest Rate Scenario versus our base scenario through 2021. These rates represent the most relevantshort-term and long-term rates for our base scenario which uses LIBOR as the benchmark rate. See “Risk Factors — Economic Environment and Capital Risks— Difficult Economic Conditions May Adversely Affect Our Business, Results of Operations and Financial Condition — Interest Rate Risk ” for informationregarding the potential change from LIBOR to SOFR.

2019 2020 2021

Low Interest Rate

Scenario Base Scenario Low Interest Rate

Scenario Base Scenario Low Interest Rate

Scenario Base Scenario

Three-month LIBOR 1.63% 2.63% 1.41% 2.41% 1.46% 2.46%

10-year U.S. Treasury 1.76% 2.76% 1.84% 2.84% 1.93% 2.93%

The Low Interest Rate Scenario assumes the three-month LIBOR to be 1.81% and the 10-year U.S. Treasury rate to be 1.69% at December 31, 2018. Weassume the low interest rate scenario to be 100 basis points lower than the base scenario until December 31, 2021 for all interest rate maturities. In addition, inthe Low Interest Rate Scenario, we assume credit spreads to remain constant from December 31, 2018 through the end of 2021 as compared to our base scenario.Further, we also include the impact of low interest rates on our pension and postretirement plan expenses. We allocate this impact across our segments and it isincluded in the segment discussion below. The discount rate used to value these plans is tied to high quality corporate bond yields. Accordingly, an extended lowinterest rate environment will result in increased pension and other postretirement benefit liabilities. However, these liabilities are offset by corresponding returnson the fixed income portfolio of pension and other postretirement benefit plan assets resulting in an overall decrease in expense.

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Hypothetical Impact to Adjusted Earnings

Based on the above assumptions, we estimate an unfavorable combined long-term and short-term interest rate impact on our consolidated adjustedearnings from the Low Interest Rate Scenario of approximately $15 million in 2019, $140 million in 2020 and $265 million in 2021. Under the Low InterestRate Scenario, our long-term businesses are negatively impacted by the larger gap between new money yields and the yield on assets rolling off the portfolio.However, there are positive offsets under the Low Interest Rate Scenario as short-term rates are much lower than the base scenario rates and the yield curvesteepens beyond 2018. For example, our securities lending business performs better than our base scenario because it is driven by the slope of the yield curverather than by the level of interest rates. In addition, derivative income is higher primarily due to our receiver swaps where we receive a fixed rate and pay afloating rate. Further, the favorable derivative impact under the Low Interest Rate Scenario will decrease in 2020 and 2021 compared to 2019. This is drivenby higher rates on forward derivative positions protection that begin in 2020.

Hypothetical Impact to Our Mark-to-Market Derivative Positions

In addition to its impact on adjusted earnings, we estimated the effect of the Low Interest Rate Scenario on the mark-to-market of our derivative positionsthat do not qualify as accounting hedges. We applied the Low Interest Rate Scenario to these derivatives and compared the impact to that from interest rates inour base scenario. We hold a significant position in long-duration receive-fixed interest rate swaps to hedge reinvestment risk. These swaps are most sensitiveto the 30-year and 10-year swap rates and we recognize gains as rates drop and recognize losses as rates rise. This estimated impact on the derivative mark-to-market does not include that of our VA program derivatives as the impact of low interest rates in the freestanding derivatives would be largely offset by themark-to-market in net derivative gains (losses) for the related embedded derivative.

Based on these additional assumptions, we estimate the combined long-term and short-term interest rate impact of the Low Interest Rate Scenario on themark-to-market of our derivative positions that do not qualify as accounting hedges to be an increase in net income of $719 million in 2019, and a decline innet income of $35 million in 2020 and $69 million in 2021. See “ — Results of Operations — Consolidated Results” for information regarding our actualgains and losses on the Company’s non-VA program derivatives due to interest rate changes which are included in net income.

Segments and Corporate & Other

The following discussion summarizes the impact of the above Low Interest Rate Scenario on the adjusted earnings of our segments, as well asCorporate & Other. See also “— Policyholder Liabilities — Policyholder Account Balances” for information regarding the account values subject to minimumguaranteed crediting rates.

U.S.

Group Benefits

In general, most of our group life insurance products in the U.S. segment are renewable term insurance and, therefore, have significant repricingflexibility. Interest rate risk arises mainly from minimum interest rate guarantees on retained asset accounts. These accounts have minimum interestcrediting rate guarantees which range from 0.5% to 3.0%. Approximately half of these account balances are currently at their respective minimum interestcrediting rates and we would expect to experience margin compression as we reinvest at lower interest rates. We have used interest rate derivatives topartially mitigate the risks of a sustained U.S. low interest rate environment. We also have exposure to interest rate risk in this business arising from ourdisability policy claim reserves. For these products, lower reinvestment rates cannot be offset by a reduction in liability crediting rates for establishedclaim reserves. Group disability policies are generally renewable term policies. Rates may be adjusted on in-force policies at renewal based on theretrospective experience rating and current interest rate assumptions.

We estimate a favorable combined long-term and short-term interest rate impact on the adjusted earnings of our Group Benefits business from theLow Interest Rate Scenario of $35 million, $15 million and $5 million in 2019, 2020 and 2021, respectively.

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Retirement and Income Solutions

RIS contains both short and long-duration products consisting of capital market products, pension risk transfers, structured settlements, and otherbenefit funding products. A significant portion of short-duration products are managed on a floating rate basis, which mitigates the impact of the lowinterest rate environment in the U.S. The sensitivities below do not include the impact of additional ALM actions that we may take in our capital marketsbusiness. The long-duration products have very predictable cash flows and our strategy is to match asset and liability durations consistent with our ALMpolicies. We also use interest rate swaps as part of our ALM strategy and to help protect income in this business. While we expect to experience margincompression as we reinvest at lower rates, the interest rate derivatives and the ALM strategy this portfolio follows should partially mitigate this risk. Also,based on cash flow estimates, only a small component of the invested asset base is subject to reinvestment risk. Reinvestment risk is defined for thispurpose as the amount of reinvestment in 2019, 2020 and 2021 that would impact adjusted earnings due to reinvesting cash flows in the Low Interest RateScenario.

We estimate an unfavorable combined long-term and short-term interest rate impact on adjusted earnings on our RIS business from the Low InterestRate Scenario of $15 million, $20 million, and $20 million in 2019, 2020, and 2021, respectively.

Property & Casualty

The product portfolio within Property & Casualty is primarily made up of six-month and annual term renewable policies, which allow for significantre-pricing flexibility with no policyholder benefits tied to interest rates. As a result, the interest rate risk for the Property & Casualty business is minimal,tied only to our portfolio reinvestment rates and our ability to offset the change of those rates through re-pricing efforts.

We estimate an unfavorable combined long-term and short-term interest rate impact on adjusted earnings on our Property & Casualty business fromthe Low Interest Rate Scenario of $0 million, $5 million and $10 million in 2019, 2020 and 2021, respectively.

Asia

Our Japan business offers traditional life insurance and accident & health products, many of which are denominated in U.S. dollars. To the extent theJapan life insurance portfolio is U.S. interest rate and LIBOR sensitive and we are unable to lower crediting rates to the customer, adjusted earnings willdecline. We manage interest rate risk on our life products through a combination of product design features and ALM strategies.

We sell annuities in Japan which are predominantly single premium products with crediting rates set at the time of issue. This allows us to tightlymanage product ALM, cash flows and net spreads, thus maintaining profitability.

We estimate an unfavorable combined long-term and short-term interest rate impact on the adjusted earnings of our Asia segment from the Low InterestRate Scenario of $20 million, $45 million and $85 million in 2019, 2020 and 2021, respectively.

MetLife Holdings

Our interest rate sensitive life products include traditional and universal life products. Because the majority of our traditional life insurance business isparticipating, we can largely offset lower investment returns on assets backing our traditional life products through adjustments to the applicable dividendscale. In our universal life products, we manage interest rate risk through a combination of product design features and ALM strategies, including the use ofinterest rate derivative hedges. While we have the ability to lower crediting rates on certain in-force universal life policies to mitigate margin compression,such actions would be partially offset by increases in our liabilities related to policies with secondary guarantees.

In annuities, the impact on adjusted earnings from margin compression is concentrated in our deferred annuities where there are minimum interest rateguarantees. Under the Low Interest Rate Scenario, we assume that a larger percentage of customers will maintain their funds with us to take advantage of theattractive minimum guaranteed crediting rates and we expect to experience margin compression as we reinvest cash flows at lower interest rates. Partiallyoffsetting this margin compression, we assume we will lower crediting rates on contractual reset dates for the portion of business that is not currently atminimum crediting rates. Additionally, we have various interest rate derivative positions to partially mitigate this risk.

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Long-term care and retained assets accounts are interest rate sensitive. Long-term care reserves have exposure to lower reinvestment rates that cannotbe offset by a reduction in liability crediting rates for established claim reserves. Long-term care policies are guaranteed renewable, and rates may beadjusted on a class basis with regulatory approval to reflect emerging experience. Our long-term care block is closed to new business. We review thediscount rate assumptions and other assumptions associated with our long-term disability claim reserves no less frequently than annually and, with respect tointerest rates, we set the discount rate on these reserves based on the prevailing interest rate environment at the time. Our retained asset accounts haveminimum interest crediting rate guarantees which range from 0.5% to 4.0%, all of which are currently at their respective minimum interest crediting rates.While we expect to experience margin compression as we reinvest at lower rates, the interest rate derivatives held in this portfolio should partially mitigatethis risk.

Reinvestment risk is defined for this purpose as the amount of reinvestment in 2019, 2020 and 2021 that would impact adjusted earnings due toreinvesting cash flows in the Low Interest Rate Scenario. For the life business, $3.4 billion, $4.5 billion and $4.0 billion in 2019, 2020 and 2021,respectively, of the asset base will be subject to reinvestment risk on an average asset base of $59.9 billion, $59.9 billion and $59.6 billion in 2019, 2020 and2021, respectively. For our deferred annuities business, $1.1 billion, $0.8 billion, and $1.2 billion in 2019, 2020, and 2021, respectively, of the asset basewill be subject to reinvestment risk on an average asset base of $16.2 billion, $15.4 billion and $14.7 billion in 2019, 2020 and 2021, respectively. For ourlong-term care portfolio, $1.6 billion, $1.6 billion and $1.6 billion of the asset base in 2019, 2020 and 2021, respectively, will be subject to reinvestment riskon an average asset base of $12.8 billion, $13.5 billion and $14.2 billion in 2019, 2020 and 2021, respectively.

We estimate an unfavorable combined long-term and short-term interest rate impact on the adjusted earnings of our MetLife Holdings segment from theLow Interest Rate Scenario of $10 million, $55 million and $100 million in 2019, 2020 and 2021, respectively.

Corporate & Other

Corporate & Other contains the surplus portfolios for the enterprise, the portfolios used to fund the capital needs of the Company and variousreinsurance agreements. The surplus portfolios are subject to reinvestment risk; however, lower net investment income is significantly offset by lowerinterest expense on both fixed and variable rate debt. Under a lower interest rate environment, fixed rate debt is assumed to be either paid off when itmatures or refinanced at a lower interest rate resulting in lower overall interest expense. Variable rate debt is indexed to the three-month LIBOR, whichresults in lower interest expense incurred.

We estimate an unfavorable combined long-term and short-term interest rate impact on the adjusted earnings of Corporate & Other from the LowInterest Rate Scenario of $5 million, $30 million and $55 million in 2019, 2020 and 2021, respectively.

CompetitivePressures

The life insurance industry remains highly competitive. See “Business — Competition.” Product development is focused on differentiation leading to moreintense competition with respect to product features and services. Several of the industry’s products can be quite homogeneous and subject to intense pricecompetition. Cost reduction efforts are a priority for industry players, with benefits resulting in price adjustments to favor customers and reinvestment capacity.Larger companies have the ability to invest in brand equity, product development, technology optimization, risk management, and innovation, which are among thefundamentals for sustained profitable growth in the life insurance industry. Insurers are focused on their core businesses, specifically in markets where they canachieve scale. Insurers are increasingly seeking alternative sources of revenue; there is a focus on monetization of assets, fee-based services, and opportunities tooffer comprehensive solutions, which include providing value-added services along with traditional products. Financial strength and flexibility and technologymodernization are prerequisites for sustainable growth in the life insurance industry. Larger market participants tend to have the capacity to invest in analytics,distribution, and information technology and have the capability to engage with the new digital entrants. There is a shift in distribution from proprietary to thirdparty models in mature markets, due to the lower cost structure. Evolving customer expectations are having a significant impact on the competitive environment asinsurers strive to offer the superior customer service demanded by an increasingly sophisticated industry client base. We believe that the continued volatility of thefinancial markets and its impact on the capital position of many competitors will continue to strain the competitive environment. Legislative and other changesaffecting the regulatory environment can also affect the competitive environment within the life insurance industry and within the broader financial servicesindustry. See “Business — Regulation.” We believe that the aforementioned factors have highlighted financial strength, technology efficiency, and organizationalagility as the most significant differentiators and, as a result, we believe the Company is well positioned to compete in this environment.

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RegulatoryDevelopments

In the United States, our life insurance companies are regulated primarily at the state level, with some products and services also subject to federal regulation.As life insurers introduce new and often more complex products, regulators refine capital requirements and introduce new reserving standards for the life insuranceindustry. Regulations recently adopted or currently under review can potentially impact the statutory reserve and capital requirements of the industry. See “RiskFactors — Regulatory and Legal Risks — Our Businesses Are Highly Regulated, and Changes in Laws, Regulation and in Supervisory and Enforcement PoliciesMay Reduce Our Profitability, Limit Our Growth, or Otherwise Adversely Affect Our Business, Results of Operations and Financial Condition.” Regulators havealso undertaken market and sales practices reviews of several markets or products, including equity-indexed annuities, variable annuities and group products and,in some states, instituted a moratorium on new reserve financing transactions. See “Business — Regulation,” “Risk Factors — Economic Environment and CapitalMarkets Risks — Our Statutory Life Insurance Reserve Financings May Be Subject to Cost Increases, and New Financings May Be Subject to Limited MarketCapacity,” “Risk Factors — Regulatory and Legal Risks — Our Businesses Are Highly Regulated, and Changes in Laws, Regulation and in Supervisory andEnforcement Policies May Reduce Our Profitability, Limit Our Growth, or Otherwise Adversely Affect Our Business, Results of Operations and FinancialCondition” a nd “ — Liquidity and Capital Resources — The Company — Capital — Affiliated Captive Reinsurance Transactions.”

Summary of Critical Accounting Estimates

The preparation of financial statements in conformity with GAAP requires management to adopt accounting policies and make estimates and assumptions thataffect amounts reported on the Consolidated Financial Statements. For a discussion of our significant accounting policies, see Note 1 of the Notes to theConsolidated Financial Statements. The most critical estimates include those used in determining:

(i) liabilities for future policy benefits and the accounting for reinsurance;(ii) capitalization and amortization of DAC and the establishment and amortization of VOBA;

(iii) estimated fair values of investments in the absence of quoted market values;(iv) investment impairments;(v) estimated fair values of freestanding derivatives and the recognition and estimated fair value of embedded derivatives requiring bifurcation;

(vi) measurement of goodwill and related impairment;(vii) measurement of employee benefit plan liabilities;

(viii) measurement of income taxes and the valuation of deferred tax assets; and(ix) liabilities for litigation and regulatory matters.

In addition, the application of acquisition accounting requires the use of estimation techniques in determining the estimated fair values of assets acquired andliabilities assumed — the most significant of which relate to the aforementioned critical accounting estimates. In applying these policies and estimates,management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies,estimates and related judgments are common in the insurance and financial services industries; others are specific to our business and operations. Actual resultscould differ from these estimates.

LiabilityforFuturePolicyBenefits

Generally, future policy benefits are payable over an extended period of time and related liabilities are calculated as the present value of future expectedbenefits to be paid, reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions inaccordance with GAAP and applicable actuarial standards. Principal assumptions used in the establishment of liabilities for future policy benefits are mortality,morbidity, policy lapse, renewal, retirement, disability incidence, disability terminations, investment returns, inflation, expenses and other contingent events asappropriate to the respective product type and geographical area. These assumptions are established at the time the policy is issued and are intended to estimate theexperience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a block of business basis. If experience is lessfavorable than assumed, additional liabilities may be established, resulting in a charge to policyholder benefits and claims.

Future policy benefit liabilities for disabled lives are estimated using the present value of benefits method and experience assumptions as to claimterminations, expenses and interest.

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Liabilities for unpaid claims are estimated based upon our historical experience and other actuarial assumptions that consider the effects of currentdevelopments, anticipated trends and risk management programs, reduced for anticipated salvage and subrogation.

Future policy benefit liabilities for minimum death and income benefit guarantees relating to certain annuity contracts are based on estimates of the expectedvalue of benefits in excess of the projected account balance, recognizing the excess ratably over the accumulation period based on total expected assessments.Liabilities for ULSG and paid-up guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to bezero and recognizing those benefits ratably over the accumulation period based on total expected assessments. The assumptions used in estimating the secondaryand paid-up guarantee liabilities are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. The assumptions ofinvestment performance and volatility for variable products are consistent with historical experience of the appropriate underlying equity index, such as theS&P 500 Index.

We regularly review our estimates of liabilities for future policy benefits and compare them with our actual experience. Differences between actual experienceand the assumptions used in pricing these policies and guarantees, as well as in the establishment of the related liabilities, result in variances in profit and couldresult in losses.

See Note 4 of the Notes to the Consolidated Financial Statements for additional information on our liability for future policy benefits.

Reinsurance

Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business andthe potential impact of counterparty credit risks. We periodically review actual and anticipated experience compared to the aforementioned assumptions used toestablish assets and liabilities relating to ceded and assumed reinsurance and evaluate the financial strength of counterparties to our reinsurance agreements usingcriteria similar to that evaluated in our security impairment process. See “— Investment Impairments.” Additionally, for each of our reinsurance agreements, wedetermine whether the agreement provides indemnification against loss or liability relating to insurance risk, in accordance with applicable accounting standards.We review all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timelyreimbursement of claims. If we determine that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurancerisk, we record the agreement using the deposit method of accounting.

See Note 6 of the Notes to the Consolidated Financial Statements for additional information on our reinsurance programs.

DeferredPolicyAcquisitionCostsandValueofBusinessAcquired

We incur significant costs in connection with acquiring new and renewal insurance business. Costs that relate directly to the successful acquisition or renewalof insurance contracts are capitalized as DAC. In addition to commissions, certain direct-response advertising expenses and other direct costs, deferrable costsinclude the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewalinsurance business only with respect to actual policies acquired or renewed. We utilize various techniques to estimate the portion of an employee’s time spent onqualifying acquisition activities that result in actual sales, including surveys, interviews, representative time studies and other methods. These estimates includeassumptions that are reviewed and updated on a periodic basis to reflect significant changes in processes or distribution methods.

VOBA represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in force at theacquisition date. For certain acquired blocks of business, the estimated fair value of the in-force contract obligations exceeded the book value of assumed in-forceinsurance policy liabilities, resulting in negative VOBA, which is presented separately from VOBA as an additional insurance liability included in other policy-related balances. The estimated fair value of the acquired obligations is based on projections, by each block of business, of future policy and contract charges,premiums, mortality and morbidity, separate account performance, surrenders, expenses, investment returns, nonperformance risk adjustment and other factors.Actual experience on the purchased business may vary from these projections. The recovery of DAC and VOBA is dependent upon the future profitability of therelated business.

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Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contractseach reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Our practice to determine the impact of gross profitsresulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is onlychanged when sustained interim deviations are expected. We monitor these events and only change the assumption when our long-term expectation changes. Theeffect of an increase (decrease) by 100 basis points in the assumed future rate of return is reasonably likely to result in a decrease (increase) in the DAC and VOBAamortization with an offset to our unearned revenue liability which nets to approximately $40 million. We use a mean reversion approach to separate accountreturns where the mean reversion period is five years with a long-term separate account return after the five-year reversion period is over. The current long-termrate of return assumption for the variable universal life contracts and variable deferred annuity contracts is 7.0%.

We periodically review long-term assumptions underlying the projections of estimated gross margins and profits. These assumptions primarily relate toinvestment returns, policyholder dividend scales, interest crediting rates, mortality, persistency, and expenses to administer business. Assumptions used in thecalculation of estimated gross margins and profits which may have significantly changed are updated annually. If the update of assumptions causes expected futuregross margins and profits to increase, DAC and VOBA amortization will decrease, resulting in a current period increase to earnings. The opposite result occurswhen the assumption update causes expected future gross margins and profits to decrease.

Our most significant assumption updates resulting in a change to expected future gross margins and profits and the amortization of DAC and VOBA are due torevisions to expected future investment returns, expenses, in-force or persistency assumptions and policyholder dividends on participating traditional life contracts,variable and universal life contracts and annuity contracts. We expect these assumptions to be the ones most reasonably likely to cause significant changes in thefuture. Changes in these assumptions can be offsetting and we are unable to predict their movement or offsetting impact over time.

At December 31, 2018 , 2017 and 2016 , DAC and VOBA for the Company was $18.9 billion , $18.4 billion and $17.6 billion, respectively. Amortization ofDAC and VOBA associated with the variable and universal life and annuity contracts was significantly impacted by movements in equity markets. The followingillustrates the effect on DAC and VOBA of changing each of the respective assumptions, as well as updating estimated gross margins or profits with actual grossmargins or profits during the years ended December 31, 2018 , 2017 and 2016 . Increases (decreases) in DAC and VOBA balances, as presented below, resulted ina corresponding decrease (increase) in amortization.

Years Ended December 31,

2018 2017 2016 (In millions)General account investment return $ 22 $ (5) $ 5Separate account investment return (42) 21 (3)Net investment/Net derivative gains (losses) and GMIB (215) 58 270In-force/Persistency 26 (10) (63)Policyholder dividends, expense and other — 68 (187)

Total $ (209) $ 132 $ 22

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Significant items contributing to the changes to DAC and VOBA amortization in 2018 consisted of the following:

• Net increase in amortization of $215 million associated with net investment/net derivative gains (losses) and GMIB, primarily driven by the following:

– An increase in amortization of $90 million from net derivative gains from freestanding derivatives hedging the variable annuity guarantees, partiallyoffset by a decrease in amortization of approximately $30 million from net derivative losses resulting from the increases in variable annuity guaranteeobligations.

– An increase in amortization of approximately $35 million associated with gains from GMIB hedges and the decreases in GMIB obligations.

– Net increase in amortization of approximately $100 million from the annual actuarial assumption update and other investment activities.

Significant items contributing to the changes to DAC and VOBA amortization in 2017 consisted of the following:

• Net decrease in amortization of $58 million associated with net investment/net derivative gains (losses) and GMIB, primarily driven by the following:

– A decrease in amortization of approximately $90 million from net derivative losses from freestanding derivatives hedging the variable annuityguarantees, largely offset by an increase in amortization of approximately $80 million from net derivative gains resulting from the decreases invariable annuity guarantee obligations.

– Net decrease in amortization of approximately $45 million from other investment activities.

• Net decrease in amortization of $68 million related to policyholder dividends, expense and other primarily driven by the following:

– A decrease in amortization of approximately $60 million from the annual actuarial assumption update of the closed block, partially offset by anincrease in amortization of approximately $40 million from updating the dividend scales of the participating life contracts.

– A decrease in amortization of approximately $55 million due to an adjustment related to certain participating whole life business assumed fromBrighthouse.

Significant items contributing to the changes to DAC and VOBA amortization in 2016 consisted of the following:

• Net decrease in amortization of $270 million associated with net investment/net derivatives gains (losses) and GMIB, primarily driven by the following:

– A decrease in amortization of approximately $180 million from net derivative losses from freestanding derivatives hedging the variable annuityguarantees.

– A decrease in amortization of approximately $20 million from net derivative losses resulting from the increases in the variable annuity guaranteeobligations.

– A decrease in amortization of approximate $40 million primarily associated with losses from GMIB hedges and the decreases in GMIB obligations.

– Net decrease in amortization of approximately $30 million from the annual actuarial assumption update and other investment activities.

• An increase in amortization of $187 million related to policyholder dividends, expense and other primarily driven by the following:

– An increase in amortization of approximately $110 million from the annual actuarial assumption update of the closed block.

– An increase in amortization of approximately $70 million from updating the dividend scales of the participating life contracts.

Our DAC and VOBA balance is also impacted by unrealized investment gains (losses) and the amount of amortization which would have been recognized ifsuch gains and losses had been realized. The decrease in unrealized investment gains (losses) increased the DAC and VOBA balance by $521 million, $529 millionand $163 million in 2018, 2017 and 2016, respectively. See Notes 5 and 8 of the Notes to the Consolidated Financial Statements for information regarding theDAC and VOBA offset to unrealized investment gains (losses).

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EstimatedFairValueofInvestments

In determining the estimated fair value of our investments, fair values are based on unadjusted quoted prices for identical investments in active markets thatare readily and regularly obtainable. When such unadjusted quoted prices are not available, estimated fair values are based on quoted prices in markets that are notactive, quoted prices for similar but not identical investments, or other observable inputs. If these inputs are not available, or observable inputs are notdeterminable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value ofinvestments.

The methodologies, assumptions and inputs utilized are described in Note 10 of the Notes to the Consolidated Financial Statements.

Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. Our ability tosell investments, or the price ultimately realized for investments, depends upon the demand and liquidity in the market and increases the use of judgment indetermining the estimated fair value of certain investments.

InvestmentImpairments

One of the significant estimates related to fixed maturity securities available-for-sale (“AFS”) is our impairment evaluation. The assessment of whether another-than-temporary impairment (“OTTI”) occurred is based on our case-by-case evaluation of the underlying reasons for the decline in estimated fair value on asecurity-by-security basis. Our review of each security for OTTI includes an analysis of gross unrealized losses by three categories of severity and/or age of grossunrealized loss. An extended and severe unrealized loss position on a security may not have any impact on the ability of the issuer to service all scheduled interestand principal payments. Accordingly, such an unrealized loss position may not impact our evaluation of recoverability of all contractual cash flows or the ability torecover an amount at least equal to its amortized cost based on the present value of the expected future cash flows to be collected.

Additionally, we consider a wide range of factors about the security issuer and use our best judgment in evaluating the cause of the decline in the estimated fairvalue of the security and in assessing the prospects for near-term recovery. Inherent in our evaluation of the security are assumptions and estimates about theoperations of the issuer and its future earnings potential. Factors we consider in the OTTI evaluation process are described in Note 8 of the Notes to theConsolidated Financial Statements.

The determination of the amount of allowances and impairments on the remaining invested asset classes is highly subjective and is based upon our periodicevaluation and assessment of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditionschange and new information becomes available.

See Notes 1 and 8 of the Notes to the Consolidated Financial Statements for additional information relating to our determination of the amount of allowancesand impairments.

Derivatives

The determination of the estimated fair value of freestanding derivatives, when quoted market values are not available, is based on market standard valuationmethodologies and inputs that management believes are consistent with what other market participants would use when pricing the instruments. Derivativevaluations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk,volatility, liquidity and changes in estimates and assumptions used in the pricing models. See Note 10 of the Notes to the Consolidated Financial Statements foradditional details on significant inputs into the OTC derivative pricing models and credit risk adjustment.

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We issue variable annuity products with guaranteed minimum benefits, some of which are embedded derivatives measured at estimated fair value separatelyfrom the host variable annuity product, with changes in estimated fair value reported in net derivative gains (losses). The estimated fair values of these embeddedderivatives are determined based on the present value of projected future benefits minus the present value of projected future fees. The projections of futurebenefits and future fees require capital market and actuarial assumptions, including expectations concerning policyholder behavior. A risk neutral valuationmethodology is used under which the cash flows from the guarantees are projected under multiple capital market scenarios using observable risk-free rates. Thevaluation of these embedded derivatives also includes an adjustment for our nonperformance risk and risk margins for non-capital market inputs. Thenonperformance risk adjustment, which is captured as a spread over the risk-free rate in determining the discount rate to discount the cash flows of the liability, isdetermined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related creditdefault swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuinginsurance subsidiaries compared to MetLife, Inc. Risk margins are established to capture the non-capital market risks of the instrument which represent theadditional compensation a market participant would require to assume the risks related to the uncertainties in certain actuarial assumptions. The establishment ofrisk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees.

The table below illustrates the impact that a range of reasonably likely variances in credit spreads would have on our consolidated balance sheet, excluding theeffect of income tax, related to the embedded derivative valuation on certain variable annuity products measured at estimated fair value. In determining the ranges,we have considered current market conditions, as well as the market level of spreads that can reasonably be anticipated over the near term. The ranges do notreflect extreme market conditions such as those experienced during the 2008-2009 financial crisis, as we do not consider those to be reasonably likely events in thenear future.

The impact of the range of reasonably likely variances in credit spreads increased significantly as compared to prior periods. However, these estimated effectsdo not take into account potential changes in other variables, such as equity price levels and market volatility, which can also contribute significantly to changes incarrying values. Therefore, the table does not necessarily reflect the ultimate impact on the consolidated financial statements under the credit spread variancescenarios presented below.

Changes in Balance Sheet Carrying Value At December 31,

2018

Policyholder

Account Balances DAC and VOBA (In millions)100% increase in our credit spread $ 595 $ 36As reported $ 793 $ 7050% decrease in our credit spread $ 906 $ 89

The accounting for derivatives is complex and interpretations of accounting standards continue to evolve in practice. If it is determined that hedge accountingdesignations were not appropriately applied, reported net income could be materially affected. Assessments of hedge effectiveness and measurements ofineffectiveness of hedging relationships are also subject to interpretations and estimations and different interpretations or estimates may have a material effect onthe amount reported in net income.

Variable annuities with guaranteed minimum benefits may be more costly than expected in volatile or declining equity markets. Market conditions including,but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates, changes in our nonperformance risk, variations inactuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in theestimated fair value of the guarantees that could materially affect net income. If interpretations change, there is a risk that features previously not bifurcated mayrequire bifurcation and reporting at estimated fair value on the consolidated financial statements and respective changes in estimated fair value could materiallyaffect net income.

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Additionally, we ceded the risk associated with certain of the variable annuities with guaranteed minimum benefits described in the preceding paragraphs. Thevalue of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly writtenby us with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. Because certain of the direct guarantees do not meet thedefinition of an embedded derivative and, thus are not accounted for at fair value, significant fluctuations in net income may occur since the change in fair value ofthe embedded derivative on the ceded risk is being recorded in net income without a corresponding and offsetting change in fair value of the direct guarantee.

See Note 9 of the Notes to the Consolidated Financial Statements for additional information on our derivatives and hedging programs.

Goodwill

Goodwill is tested for impairment at least annually or more frequently if events or circumstances, such as adverse changes in the business climate, indicate thatthere may be justification for conducting an interim test.

For purposes of goodwill impairment testing, if the carrying value of a reporting unit exceeds its estimated fair value, the implied fair value of the reportingunit goodwill is compared to the carrying value of that goodwill to measure the amount of impairment loss, if any. In such instances, the implied fair value of thegoodwill is determined in the same manner as the amount of goodwill that would be determined in a business acquisition. The key inputs, judgments andassumptions necessary in determining estimated fair value of the reporting units include projected adjusted earnings, current book value, the level of economiccapital required to support the mix of business, long-term growth rates, comparative market multiples, the account value of in-force business, projections of newand renewed business, as well as margins on such business, the level of interest rates, credit spreads, equity market levels, and the discount rate that we believe isappropriate for the respective reporting unit.

In the third quarter of 2018, the Company tested the MetLife Holdings life reporting unit for impairment using the actuarial based embedded value fairvaluation approach. The estimated fair value of the reporting unit exceeded the carrying value by approximately 25% and, therefore, the reporting unit was notimpaired. If we had assumed that the discount rate was 100 basis points higher than the discount rate used, the estimated fair value of the MetLife Holdings lifereporting unit would have been higher than the carrying value by approximately 5%. The MetLife Holdings life reporting unit consists of operations relating toproducts and businesses no longer actively marketed by the Company. As of December 31, 2018, the amount of goodwill allocated to the MetLife Holdings lifereporting unit was $887 million.

The Company also performed its annual goodwill impairment tests of all other reporting units during the third quarter of 2018 using a qualitative assessmentand/or quantitative assessments under the market multiple and discounted cash flow valuation approaches based on best available data as of June 30, 2018 andconcluded that the estimated fair values of all such reporting units were substantially in excess of their carrying values and, therefore, goodwill was not impaired.

We apply significant judgment when determining the estimated fair value of our reporting units and when assessing the relationship of market capitalization tothe aggregate estimated fair value of our reporting units. The valuation methodologies utilized are subject to key judgments and assumptions that are sensitive tochange. Estimates of fair value are inherently uncertain and represent only management’s reasonable expectation regarding future developments. These estimatesand the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Declines in theestimated fair value of our reporting units could result in goodwill impairments in future periods which could materially adversely affect our results of operationsor financial position.

See Note 11 of the Notes to the Consolidated Financial Statements for additional information on our goodwill.

EmployeeBenefitPlans

Certain subsidiaries of MetLife, Inc. sponsor and/or administer various plans that provide defined benefit pension and other postretirement benefits coveringeligible employees. See Note 17 of the Notes to the Consolidated Financial Statements for information on amendments to our U.S. benefit plans. The calculation ofthe obligations and expenses associated with these plans requires an extensive use of assumptions such as the discount rate, expected rate of return on plan assets,rate of future compensation increases and healthcare cost trend rates, as well as assumptions regarding participant demographics such as rate and age of retirement,withdrawal rates and mortality. In consultation with external actuarial firms, we determine these assumptions based upon a variety of factors such as historicalexperience of the plan and its assets, currently available market and industry data, and expected benefit payout streams.

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We determine the expected rate of return on plan assets based upon an approach that considers inflation, real return, term premium, credit spreads, equity riskpremium and capital appreciation, as well as expenses, expected asset manager performance, asset weights and the effect of rebalancing. Given the amount of planassets as of December 31, 2017 , the beginning of the measurement year, if we had assumed an expected rate of return for both our pension and otherpostretirement benefit plans that was 100 basis points higher or 100 basis points lower than the rates we assumed, the change in our net periodic benefit costswould have been a decrease of $109 million and an increase of $109 million, respectively, in 2018 . This considers only changes in our assumed long-term rate ofreturn given the level and mix of invested assets at the beginning of the year, without consideration of possible changes in any of the other assumptions describedabove that could ultimately accompany any changes in our assumed long-term rate of return.

We determine the discount rates used to value the Company’s pension and postretirement obligations, based upon rates commensurate with current yields onhigh quality corporate bonds. Given our pension and postretirement obligations as of December 31, 2017 , the beginning of the measurement year, if we hadassumed a discount rate for both our pension and postretirement benefit plans that was 100 basis points higher or 100 basis points lower than the rates we assumed,the change in our net periodic benefit costs would have been a decrease of $117 million and an increase of $113 million, respectively, in 2018 . This considers onlychanges in our assumed discount rates without consideration of possible changes in any of the other assumptions described above that could ultimately accompanyany changes in our assumed discount rate. The assumptions used may differ materially from actual results due to, among other factors, changing market andeconomic conditions and changes in participant demographics. These differences may have a significant impact on the Company’s consolidated financialstatements and liquidity.

See Note 17 of the Notes to the Consolidated Financial Statements for additional discussion of assumptions used in measuring liabilities relating to ouremployee benefit plans.

IncomeTaxes

We provide for federal, state and foreign income taxes currently payable, as well as those deferred due to temporary differences between the financialreporting and tax bases of assets and liabilities. Our accounting for income taxes represents our best estimate of various events and transactions. Tax laws are oftencomplex and may be subject to differing interpretations by the taxpayer and the relevant governmental taxing authorities. In establishing a provision for income taxexpense, we must make judgments and interpretations about the application of inherently complex tax laws. We must also make estimates about when in the futurecertain items will affect taxable income in the various tax jurisdictions in which we conduct business.

In establishing a liability for unrecognized tax benefits, assumptions may be made in determining whether, and to what extent, a tax position may be sustained.Once established, unrecognized tax benefits are adjusted when there is more information available or when events occur requiring a change.

Valuation allowances are established against deferred tax assets when management determines, based on available information, that it is more likely than notthat deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well asthe amount of such allowances. See Note 1 of the Notes to the Consolidated Financial Statements for additional information relating to our determination of suchvaluation allowances.

We may be required to change our provision for income taxes when estimates used in determining valuation allowances on deferred tax assets significantlychange, or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, future events, such as changes in tax laws, taxregulations, or interpretations of such laws or regulations, could have an impact on the provision for income tax and the effective tax rate. Any such changes couldsignificantly affect the amounts reported on the consolidated financial statements in the year these changes occur.

In December 2017, U.S. Tax Reform was signed into law. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the lawwas enacted. As a result, the Company recognized the tax effects of U.S. Tax Reform for the year ended December 31, 2017. While the Company recorded areasonable estimate of the tax effects of U.S. Tax Reform in the period of enactment, its income tax a ccounting was not complete due to uncertainties that existedat the time. Accordingly, certain U.S. Tax Reform amounts were revised in the Company’s consolidated financial statements for the year ended December 31,2018.

See also Notes 1 and 18 of the Notes to the Consolidated Financial Statements for additional information on our income taxes.

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LitigationContingencies

We are a defendant in a large number of litigation matters and are involved in a number of regulatory investigations. Given the large and/or indeterminateamounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from timeto time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods. Liabilities are established when itis probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities related to certain lawsuits, including our asbestos-related liability, are especially difficult to estimate due to the limitation of reliable data and uncertainty regarding numerous variables that can affect liabilityestimates. On a quarterly and annual basis, we review relevant information with respect to liabilities for litigation, regulatory investigations and litigation-relatedcontingencies to be reflected in our consolidated financial statements. It is possible that an adverse outcome in certain of our litigation and regulatoryinvestigations, including asbestos-related cases, or the use of different assumptions in the determination of amounts recorded could have a material effect upon ourconsolidated net income or cash flows in particular quarterly or annual periods.

See Note 20 of the Notes to the Consolidated Financial Statements for additional information regarding our assessment of litigation contingencies.

Economic Capital

Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon whichcapital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in our business.

Our economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards andconsistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent riskprinciples include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard methodfor the inclusion of diversification benefits among risk types. Economic capital-based risk estimation is an evolving science and industry best practices haveemerged and continue to evolve. Areas of evolving industry best practices include stochastic liability valuation techniques, alternative methodologies for thecalculation of diversification benefits, and the quantification of appropriate shock levels. MetLife’s management is responsible for the ongoing production andenhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards.

Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact ourconsolidated net investment income, income (loss) from continuing operations, net of income tax, or adjusted earnings.

Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Othercosts are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensationcosts incurred by each segment; and (iii) cost estimates included in the Company’s product pricing.

Acquisitions and Dispositions

SeparationofBrighthouse

For information regarding the Separation, the Company’s 2018 sale of the FVO Brighthouse Common Stock, and ongoing transactions between MetLife andBrighthouse, see Notes 3 and 12 of the Notes to the Consolidated Financial Statements.

DispositionofMetLifeAfore,S.A.deC.V.

For information regarding the Company’s 2018 disposition of MetLife Afore, its pension fund management business in Mexico, see Note 3 of the Notes to theConsolidated Financial Statements.

AcquisitionofLoganCirclePartners,L.P.

In 2017, the Company completed the acquisition of Logan Circle Partners, L.P. (“Logan Circle Partners”), from Fortress Investment Group LLC, forapproximately $250 million in cash. Logan Circle Partners was a fundamental research-based investment manager providing institutional clients actively managedinvestment solutions across a broad spectrum of fixed income strategies.

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U.S.RetailAdvisorForceDivestiture

In 2016, MetLife, Inc. completed the sale to Massachusetts Mutual Life Insurance Company of its U.S. retail advisor force and certain assets associated withthe MetLife Premier Client Group, including all of the issued and outstanding shares of MetLife’s affiliated broker-dealer, MSI, a wholly-owned subsidiary ofMetLife, Inc. (collectively, the “U.S. Retail Advisor Force Divestiture”) for $291 million. See Note 3 of the Notes to the Consolidated Financial Statements forfurther information.

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Results of Operations

ConsolidatedResults

Business Overview. Overall sales for the year ended December 31, 2018 increased over 2017 levels reflecting higher sales in the majority of our businesses. Inour U.S. segment, improved sales in our RIS business were partially offset by slightly lower sales in our Group Benefits business as the impact of strong jumbocase sales in our core products in 2017 more than offset strong sales in our voluntary products in 2018 . The improvement in RIS was the result of higher sales ofpension risk transfers, most notably a large pension risk transfer transaction in the second quarter of 2018, stable value, specialized life insurance, and structuredsettlement products, partially offset by lower funding agreement issuances . An increase in sales in our Asia segment was primarily driven by growth in sales offoreign currency-denominated annuity and life products, as well as accident & health products, in Japan, partially offset by a decrease in sales in Korea and HongKong. In our Latin America segment, sales increased compared to 2017, driven by higher individual accident & health, credit life and retirement product sales inChile, partially offset by lower pension and group medical sales in Mexico. Sales in EMEA decreased primarily due to the closure of the U.K. wealth managementproduct to new business in the third quarter of 2017 and a decline in sales of our employee benefits product in the Gulf region. Revenues in our MetLife Holdingssegment decreased as a result of the discontinuance of the marketing of life and annuity products in early 2017.

Years Ended December 31,

2018 2017 2016 (In millions)Revenues Premiums $ 43,840 $ 38,992 $ 37,202Universal life and investment-type product policy fees 5,502 5,510 5,483Net investment income 16,166 17,363 16,790Other revenues 1,880 1,341 1,685Net investment gains (losses) (298) (308) 317Net derivative gains (losses) 851 (590) (690)

Total revenues 67,941 62,308 60,787Expenses Policyholder benefits and claims and policyholder dividends 43,907 39,544 37,581Interest credited to policyholder account balances 4,013 5,607 5,176Capitalization of DAC (3,254) (3,002) (3,152)Amortization of DAC and VOBA 2,975 2,681 2,718Amortization of negative VOBA (56) (140) (269)Interest expense on debt 1,122 1,129 1,157Other expenses 12,927 12,953 13,295

Total expenses 61,634 58,772 56,506Income (loss) from continuing operations before provision for income tax 6,307 3,536 4,281Provision for income tax expense (benefit) 1,179 (1,470) 693Income (loss) from continuing operations, net of income tax 5,128 5,006 3,588Income (loss) from discontinued operations, net of income tax — (986) (2,734)Net income (loss) 5,128 4,020 854Less: Net income (loss) attributable to noncontrolling interests 5 10 4Net income (loss) attributable to MetLife, Inc. 5,123 4,010 850Less: Preferred stock dividends 141 103 103Net income (loss) available to MetLife, Inc.’s common shareholders $ 4,982 $ 3,907 $ 747

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YearEndedDecember31,2018ComparedwiththeYearEndedDecember31,2017

During the year ended December 31, 2018, net income (loss) increased $1.1 billion from 2017, primarily driven by favorable changes in net derivative gains(losses), adjusted earnings, income (loss) from discontinued operations, and results from our divested businesses, partially offset by 2017 tax-related benefits,primarily related to U.S. Tax Reform.

Management of Investment Portfolio and Hedging Market Risks with Derivatives. We manage our investment portfolio using disciplined ALM principles,focusing on cash flow and duration to support our current and future liabilities. Our intent is to match the timing and amount of liability cash outflows withinvested assets that have cash inflows of comparable timing and amount, while optimizing risk-adjusted net investment income and risk-adjusted total return.Our investment portfolio is heavily weighted toward fixed income investments, with over 80% of our portfolio invested in fixed maturity securities AFS andmortgage loans. These securities and loans have varying maturities and other characteristics which cause them to be generally well suited for matching the cashflow and duration of insurance liabilities. In addition, our general account investment portfolio includes, within contractholder-directed equity securities and fairvalue option securities (collectively, “Unit-linked and FVO Securities”), contractholder-directed equity securities supporting unit-linked variable annuity typeliabilities (“Unit-linked investments”), which do not qualify as separate account assets. The returns on these Unit-linked investments, which can varysignificantly from period to period, include changes in estimated fair value subsequent to purchase, inure to contractholders and are offset in earnings by acorresponding change in policyholder account balances through interest credited to policyholder account balances.

We purchase investments to support our insurance liabilities and not to generate net investment gains and losses. However, net investment gains and lossesare incurred and can change significantly from period to period due to changes in external influences, including changes in market factors such as interest rates,foreign currency exchange rates, credit spreads and equity markets; counterparty specific factors such as financial performance, credit rating and collateralvaluation; and internal factors such as portfolio rebalancing. Changes in these factors from period to period can significantly impact the levels of bothimpairments and realized gains and losses on investments sold.

We also use derivatives as an integral part of our management of the investment portfolio and insurance liabilities to hedge certain risks, including changesin interest rates, foreign currency exchange rates, credit spreads and equity market levels. We use freestanding interest rate, equity, credit and currencyderivatives to hedge certain invested assets and insurance liabilities. A portion of these hedges are designated and qualify as accounting hedges, which reducevolatility in earnings. For those hedges not designated as accounting hedges, changes in market factors lead to the recognition of fair value changes in netderivative gains (losses) generally without an offsetting gain or loss recognized in earnings for the item being hedged, which creates volatility in earnings. Weactively evaluate market risk hedging needs and strategies to ensure our free cash flow and capital objectives are met under a range of market conditions. Forexample, during 2017, we restructured certain derivative hedges to decrease volatility from nonqualified interest rate derivatives and to help meet prospectivedividend and free cash flow objectives under varying interest rate scenarios. As part of this restructuring, we replaced certain nonqualified derivatives withderivatives that qualify for hedge accounting treatment. In addition, we also entered into replication transactions using interest rate swaps, which are accountedfor at amortized cost under statutory guidelines and are nonqualified derivatives under GAAP.

Certain variable annuity products with guaranteed minimum benefits contain embedded derivatives that are measured at estimated fair value separately fromthe host variable annuity contract, with changes in estimated fair value recorded in net derivative gains (losses). We use freestanding derivatives to hedge themarket risks inherent in these variable annuity guarantees. Ongoing refinement of the strategy may be required to take advantage of recently adopted NAIC rulesrelated to a statutory accounting election for derivatives that mitigate interest rate sensitivity related to variable annuity guarantees. The restructured hedgestrategy is classified as a macro hedge program, included in the non-VA program derivatives section of the table below, to protect our overall statutory capitalfrom significant adverse economic conditions. The valuation of these embedded derivatives includes a nonperformance risk adjustment, which is unhedged, andcan be a significant driver of net derivative gains (losses) and volatility in earnings, but does not have an economic impact on us.

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Net Derivative Gains (Losses) . The variable annuity embedded derivatives and associated freestanding derivative hedges are collectively referred to as “VAprogram derivatives.” All other derivatives that are economic hedges of certain invested assets and insurance liabilities are referred to as “non-VA programderivatives.” The table below presents the impact on net derivative gains (losses) from non-VA program derivatives and VA program derivatives:

Years Ended December 31, 2018 2017 (In millions)Non-VA program derivatives

Interest rate $ 177 $ (39)Foreign currency exchange rate 464 (379)Credit (52) 198Equity 115 6Non-VA embedded derivatives 78 (131)

Total non-VA program derivatives 782 (345)VA program derivatives

Market risks in embedded derivatives (51) 1,052Nonperformance risk adjustment on embedded derivatives 133 (190)Other risks in embedded derivatives (310) 68

Total embedded derivatives (228) 930Freestanding derivatives hedging embedded derivatives 297 (1,175)

Total VA program derivatives 69 (245)Net derivative gains (losses) $ 851 $ (590)

The favorable change in net derivative gains (losses) on non-VA program derivatives was $1.1 billion ($890 million, net of income tax). This was primarilydue to the U.S. dollar strengthening relative to other key currencies in 2018 versus mostly weakening in 2017, favorably impacting foreign currency swaps thatprimarily hedge foreign currency-denominated bonds. In addition, there was a favorable change in interest rate impact due to: (i) the impact of the 2017restructuring of the hedge program to decrease volatility from nonqualified interest rate derivatives and to help meet prospective dividend and free cash flowobjectives under varying interest rate scenarios; (ii) long-term U.S. interest rates increased in 2018 and mostly decreased in 2017, favorably impacting receivefloat interest rate swaps; (iii) mid-term rates increased more significantly in 2018 than 2017, positively impacting interest rate caps; and (iv) certain foreigninterest rates decreased in 2018 and increased in 2017, favorably impacting receive fixed interest rate swaps indexed to those rates. Also, equity marketsdecreased in 2018 and increased in 2017, favorably impacting new equity options acquired primarily as part of our macro hedge program. There was also achange in the value of the underlying assets favorably impacting non-VA embedded derivatives related to funds withheld on a certain reinsurance agreement.These increases were partially offset by credit spreads widening in 2018 and narrowing in 2017, unfavorably impacting written credit default swaps used inreplications. Because certain of these hedging strategies are not designated or do not qualify as accounting hedges, the changes in the estimated fair value ofthese freestanding derivatives are recognized in net derivative gains (losses) without an offsetting gain or loss recognized in earnings for the items being hedged.

The favorable change in net derivative gains (losses) on VA program derivatives was $314 million ($248 million, net of income tax). This was due to afavorable change of $369 million ($292 million, net of income tax) in market risks in embedded derivatives, net of the impact of freestanding derivativeshedging those risks, and a favorable change of $323 million ($255 million, net of income tax) in the nonperformance risk adjustment on embedded derivatives,partially offset by an unfavorable change of $378 million, ($299 million, net of income tax) in other risks in embedded derivatives. Other risks relate primarily tothe impact of policyholder behavior and other non-market risks that generally cannot be hedged.

The aforementioned $369 million ($292 million, net of income tax) favorable change reflects a $1.5 billion ($1.2 billion, net of income tax) favorablechange in freestanding derivatives hedging market risks in embedded derivatives, partially offset by a $1.1 billion ($871 million, net of income tax) unfavorablechange in market risks in embedded derivatives.

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The primary changes in market factors are summarized as follows:

• Key equity index levels decreased in 2018 and increased in 2017, contributing to a favorable change in our freestanding derivatives and an unfavorablechange in our embedded derivatives. For example, the S&P 500 Index decreased 6% in 2018 and increased 19% in 2017.

• Long-term U.S. interest rates increased in 2018 and mostly decreased in 2017, contributing to a favorable change in our embedded derivatives. Ourfreestanding interest rate derivatives were favorably impacted by the restructuring of the VA hedging strategy, partially offset by the increase in interestrates. For example, the 30-year U.S. swap rate increased 30 basis points in 2018 and decreased 5 basis points in 2017.

• Changes in foreign currency exchange rates contributed to a favorable change in our freestanding derivatives and an unfavorable change in our embeddedderivatives related to the assumed variable annuity guarantees from our former operating joint venture in Japan. For example, the Japanese yenstrengthened against the euro by 7% in 2018 and weakened by 10% in 2017.

The aforementioned $378 million ($299 million, net of income tax) unfavorable change in other risks in embedded derivatives reflects:

• Actuarial assumption updates associated with variable annuity guarantees assumed from our former operating joint venture in Japan,

• Updates to actuarial policyholder behavior assumptions within the valuation model, and

• A combination of other factors, which include fees being deducted from accounts, changes in the benefit base, premiums, lapses, withdrawals and deaths.

The aforementioned $323 million ($255 million, net of income tax) favorable change in the nonperformance risk adjustment on embedded derivativesresulted from a favorable change of $172 million, before income tax, as a result of model changes and changes in capital market inputs, such as long-terminterest rates and key equity index levels, on variable annuity guarantees, in addition to a favorable change of $151 million, before income tax, related to changesin our own credit spread.

When equity index levels decrease in isolation, the variable annuity guarantees become more valuable to policyholders, which results in an increase in theundiscounted embedded derivative liability. Discounting this unfavorable change by the risk adjusted rate yields a smaller loss than by discounting at the risk-free rate, thus creating a gain from including an adjustment for nonperformance risk.

When the risk-free interest rate decreases in isolation, discounting the embedded derivative liability produces a higher valuation of the liability than if therisk-free interest rate had remained constant. Discounting this unfavorable change by the risk adjusted rate yields a smaller loss than by discounting at the risk-free interest rate, thus creating a gain from including an adjustment for nonperformance risk.

When our own credit spread increases in isolation, discounting the embedded derivative liability produces a lower valuation of the liability than if our owncredit spread had remained constant. As a result, a gain is created from including an adjustment for nonperformance risk. For each of these primary marketdrivers, the opposite effect occurs when they move in the opposite direction.

Net Investment Gains (Losses) . The favorable change in net investment gains (losses) of $10 million ($8 million, net of income tax) primarily reflects lowernon-investment portfolio losses in 2018. In 2017, we recognized a mark-to-market loss on our retained investment in Brighthouse Financial, Inc. in connectionwith the Separation. In 2018, we recognized lower losses representing both the change in estimated fair value of FVO Brighthouse Common Stock we heldthrough date of disposal and the loss upon disposal in June 2018. In addition, in 2018, we recognized mark-to-market losses on equity securities which aremeasured at fair value through net income and in 2018 compared to 2017, there were lower gains on sales of fixed maturity securities AFS and real estate jointventures.

Actuarial Assumption Review and Certain Other Insurance Adjustments. Results for 2018 include a $358 million ($272 million, net of income tax) chargeassociated with our annual review of actuarial assumptions related to reserves and DAC, of which a $131 million loss ($94 million, net of income tax) wasrecognized in net derivative gains (losses).

Of the $358 million charge, $20 million ($20 million, net of income tax) was related to DAC and $338 million ($252 million, net of income tax) wasassociated with reserves. The portion of the $358 million charge that was included in adjusted earnings was $53 million ($42 million, net of income tax).

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The $131 million loss recognized in net derivative gains (losses) associated with our annual review of actuarial assumptions was included within the otherrisks in embedded derivatives caption in the table above.

As a result of our annual review of actuarial assumptions, changes were made to economic, biometric, policyholder behavior, and operational assumptions.The most significant impacts were in the Asia and MetLife Holdings segments related to Japan variable annuities and the projection of closed block results,respectively, and are summarized as follows:

• Economic assumption updates resulted in net favorable changes in reserves and DAC of $38 million ($29 million, net of income tax).

• Changes to biometric assumptions resulted in net favorable changes in reserves and DAC of $55 million ($44 million, net of income tax).

• Changes in policyholder behavior assumptions resulted in a net charge of $321 million ($241 million, net of income tax).

• Changes in operational assumptions, most notably related to closed block projections, resulted in a net charge of $130 million ($104 million, net ofincome tax).

Results for 2017 include a $37 million ($25 million, net of 2017 income tax) gain associated with our annual review of actuarial assumptions related toreserves and DAC, of which a $21 million ($14 million, net of 2017 income tax) gain was recognized in net derivative gains (losses). Of the $37 million gain, a$96 million ($64 million, net of 2017 income tax) gain was associated with DAC and a loss of $59 million ($39 million, net of 2017 income tax) was related toreserves. The portion of the $37 million gain that is included in adjusted earnings is $100 million ($66 million, net of 2017 income tax).

Certain other insurance adjustments recorded in 2018 include a $79 million ($63 million, net of income tax) charge due to a 2018 increase in our IBNR lifereserves, reflecting enhancements to our processes related to potential claims in our MetLife Holdings segment, and a favorable net insurance adjustment of $47million ($37 million, net of income tax) resulting from reserve and DAC modeling improvements in our individual disability insurance business in our U.S.segment. These adjustments were included in adjusted earnings.

Divested Businesses . Income (loss) before provision for income tax related to the divested businesses, excluding net investment gains (losses) and netderivative gains (losses), increased $936 million ($650 million, net of income tax) to a loss of $122 million ($97 million, net of income tax) in 2018 from a lossof $1.1 billion ($747 million, net of income tax) in 2017. Included in this increase was an increase in total revenues of $570 million, before income tax, and adecrease in total expenses of $366 million, before income tax. Divested businesses primarily include activity related to the Separation.

Discontinued Operations . Income (loss) from discontinued operations, net of income tax, increased $986 million for the year ended December 31, 2018from a loss of $986 million, net of income tax, for the year ended December 31, 2017. Income (loss) from discontinued operations reflects the results of ourformer Brighthouse Financial segment. For further information, see Note 3 of the Notes to the Consolidated Financial Statements.

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Taxes and Other Tax-Related Items. Income tax expense for the year ended December 31, 2018 was $1.2 billion, or 19% of income (loss) from continuingoperations before provision for income tax, compared with an income tax benefit of $1.5 billion, or 42% of income (loss) from continuing operations beforeprovision for income tax, for the year ended December 31, 2017. The Company’s effective tax rates differ from the U.S. statutory rate of 21% typically due tonon-taxable investment income, tax credits for investments in low income housing, and foreign earnings taxed at different rates than the U.S. statutory rate. Our2018 results include the following tax items: (i) a net tax-related benefit of $366 million related to the settlement of tax audits, which includes a $349 millionbenefit related to the tax treatment of a wholly-owned U.K. investment subsidiary of MLIC (comprised of a $168 million tax benefit and a $181 million interestbenefit), (ii) an adjusted earnings charge of $124 million related to U.S. Tax Reform (comprised of a $78 million tax charge and a $46 million, net of income tax,reduction in net investment income), (iii) a benefit of $36 million related to a non-cash transfer of assets from a wholly-owned U.K. investment subsidiary toMLIC, (iv) a charge of $69 million related to the non-deductible loss incurred on the mark-to-market and disposition of FVO Brighthouse Common Stock, (v) acharge of $17 million related to a tax adjustment in Chile, and (vi) a charge of $5 million in Colombia to establish a deferred tax liability due to a change in taxstatus. Our 2017 results include the following tax items: (i) a net benefit of $1.3 billion related to the impact of U.S. Tax Reform, which includes a net benefit of$1.6 billion (comprised of a $1.8 billion tax benefit and a $222 million increase in other divested expenses reflective of a reduction in other receivables due to therevaluation of a tax receivable from Brighthouse) and an adjusted earnings charge of $298 million (comprised of a $254 million tax charge and a $44 million, netof income tax, reduction in net investment income), (ii) a tax-related benefit of $540 million related to the Separation, (iii) a $41 million benefit from thefinalization of certain tax audits, (iv) a net charge of $180 million as a result of the repatriation of approximately $3.0 billion of cash following the post-Separation review of our capital needs, partially offset by a benefit associated with dividends from our non-U.S. operations, and (v) a benefit of $9 millionrelated to the settlement of a tax audit in Argentina.

Adjusted Earnings .As more fully described in “— Non-GAAP and Other Financial Disclosures,” we use adjusted earnings, which does not equate toincome (loss) from continuing operations, net of income tax, as determined in accordance with GAAP, to analyze our performance, evaluate segmentperformance and allocate resources. We believe that the presentation of adjusted earnings and adjusted earnings available to common shareholders, as wemeasure it for management purposes, enhances the understanding of our performance by highlighting the results of operations and the underlying profitabilitydrivers of the business. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of our performance relative to our businessplan and facilitate comparisons to industry results. Adjusted earnings and adjusted earnings available to common shareholders should not be viewed assubstitutes for net income (loss) and net income (loss) available to MetLife, Inc.’s common shareholders, respectively. Adjusted earnings available to commonshareholders increased $1.2 billion, net of income tax, to $5.5 billion, net of income tax, for the year ended December 31, 2018 from $4.2 billion, net of incometax, for the year ended December 31, 2017.

YearEndedDecember31,2017ComparedwiththeYearEndedDecember31,2016

During the year ended December 31, 2017, net income (loss) increased $3.2 billion from 2016 primarily driven by favorable changes in discontinuedoperations and adjusted earnings, as well as the favorable impact of U.S. Tax Reform, partially offset by an unfavorable change in net investment gains (losses).

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Net Derivative Gains (Losses) . The variable annuity embedded derivatives and associated freestanding derivative hedges are collectively referred to as “VAprogram derivatives” in the following table. All other derivatives that are economic hedges of certain invested assets and insurance liabilities are referred to as“non-VA program derivatives” in the following table. The table below presents the impact on net derivative gains (losses) from non-VA program derivatives andVA program derivatives:

Years Ended December 31,

2017 2016

(In millions)Non-VA program derivatives

Interest rate $ (39) $ (449)Foreign currency exchange rate (379) 352Credit 198 108Equity 6 12Non-VA embedded derivatives (131) 26

Total non-VA program derivatives (345) 49VA program derivatives

Market risks in embedded derivatives 1,052 364Nonperformance risk adjustment on embedded derivatives (190) 156Other risks in embedded derivatives 68 (727)

Total embedded derivatives 930 (207)Freestanding derivatives hedging embedded derivatives (1,175) (532)

Total VA program derivatives (245) (739)Net derivative gains (losses) $ (590) $ (690)

The unfavorable change in net derivative gains (losses) on non-VA program derivatives was $394 million ($256 million, net of income tax). This wasprimarily due to the U.S. dollar, relative to other key currencies, weakening in 2017 versus mostly strengthening in 2016, unfavorably impacting foreigncurrency swaps that primarily hedge foreign currency-denominated bonds. Additionally, there was a change in the value of the underlying assets unfavorablyimpacting non-VA embedded derivatives related to funds withheld on a certain reinsurance agreement. These decreases were partially offset by long-terminterest rates mostly decreasing in 2017 and mostly increasing in 2016, favorably impacting receive-fixed interest rate swaps and total rate of return swapshedging long-duration liability portfolios. Because certain of these hedging strategies are not designated or do not qualify as accounting hedges, the changes inthe estimated fair value of these freestanding derivatives are recognized in net derivative gains (losses) without an offsetting gain or loss recognized in earningsfor the item being hedged.

The favorable change in net derivative gains (losses) on VA program derivatives was $494 million ($321 million, net of income tax). This was due to afavorable change of $795 million ($517 million, net of income tax) in other risks in embedded derivatives and a favorable change of $45 million ($29 million,net of income tax) in market risks in embedded derivatives, net of the impact of freestanding derivatives hedging those risks, partially offset by an unfavorablechange of $346 million, ($225 million, net of income tax) in the nonperformance risk adjustment on embedded derivatives. Other risks relate primarily to theimpact of policyholder behavior and other non-market risks that generally cannot be hedged.

The foregoing $45 million ($29 million, net of income tax) favorable change reflects a $688 million ($447 million, net of income tax) favorable change inmarket risks in embedded derivatives, partially offset by a $643 million ($418 million, net of income tax) unfavorable change in freestanding derivatives hedgingmarket risks in embedded derivatives.

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The primary changes in market factors are summarized as follows:

• Changes in foreign currency exchange rates contributed to an unfavorable change in our freestanding derivatives and a favorable change in our embeddedderivatives related to the assumed variable annuity guarantees from our former operating joint venture in Japan. For example, the Japanese yen weakenedagainst the euro by 10% in 2017 and strengthened by 6% in 2016.

• Key equity index levels increased more in 2017 than in 2016, contributing to an unfavorable change in our freestanding derivatives and a favorablechange in our embedded derivatives. For example, the S&P 500 Index increased 19% in 2017 and increased 10% in 2016.

• Long-term interest rates in Japan increased in 2017 and decreased in 2016, contributing to a favorable change in our embedded derivatives and anunfavorable change in our freestanding derivatives related to the assumed variable annuity guarantees from our former operating joint venture in Japan.This was partially offset by long-term U.S. interest rates mostly decreasing in 2017 and mostly increasing in 2016. For example, the 30-year Japan swaprate increased five basis points in 2017 and decreased 41 basis points in 2016, and the 20-year U.S. swap rate decreased three basis points in 2017 andincreased three basis points in 2016.

The foregoing $795 million ($517 million, net of income tax) favorable change in other risks in embedded derivatives reflects:

• Updates to actuarial policyholder behavior assumptions within the valuation model.

• A change in the risk margin adjustment measuring policyholder behavior risks, along with market and interest rate changes, and

• The partially offsetting impact of a combination of other factors, which include fees being deducted from accounts and changes in the benefit base,premiums, lapses, withdrawals and mortality rates.

The aforementioned $346 million ($225 million, net of income tax) unfavorable change in the nonperformance risk adjustment on embedded derivativesresulted from an unfavorable change of $209 million, before income tax, as a result of model changes and changes in capital market inputs, such as long-terminterest rates and key equity index levels, on variable annuity guarantees, in addition to an unfavorable change of $137 million, before income tax, related tochanges in our own credit spread.

Net Investment Gains (Losses) . The unfavorable change in net investment gains (losses) of $625 million ($406 million, net of income tax) primarily reflectsa 2017 loss recognized in connection with the Separation, while the 2016 results include gains from the U.S. Retail Advisor Force Divestiture and foreigncurrency transactions. These unfavorable changes were partially offset by higher gains on sales of real estate joint ventures and a lower provision for mortgageloan losses.

Actuarial Assumption Review. Results for 2017 include a $37 million ($25 million, net of income tax) gain associated with our annual review of actuarialassumptions related to reserves and DAC, of which a $21 million ($14 million, net of income tax) gain was recognized in net derivative gains (losses). Of the$37 million gain, a $96 million ($64 million, net of income tax) gain was associated with DAC, and a loss of $59 million ($39 million, net of income tax) wasrelated to reserves. The $21 million gain recognized in net derivative gains (losses) associated with this review of actuarial assumptions was included within theother risks in embedded derivatives caption in the table above.

As a result of our annual review of actuarial assumptions, changes were made to economic, policyholder behavior, biometric and operational assumptions.These are summarized as follows:

• Changes in operational assumptions, most notably related to updates to maintenance expense and closed block projections, resulted in a net gain of $114million ($74 million net of income tax).

• Changes in policyholder behavior assumptions resulted in reserve increases, partially offset by favorable DAC, resulting in a net charge of $47 million($29 million, net of income tax).

• Economic assumption updates resulted in reserve increases and DAC releases, resulting in a charge of $19 million ($13 million net of income tax).

• Changes to biometric assumptions resulted in an increase in reserves, partially offset by favorable DAC, resulting in a charge of $11 million ($7 million,net of income tax).

The most significant impacts were in the MetLife Holdings Life and Annuities businesses.

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Results for 2016 include a $648 million ($421 million, net of income tax) loss associated with our annual review of actuarial assumptions related to reservesand DAC, of which a $709 million ($461 million, net of income tax) loss was recognized in net derivative gains (losses) and a $103 million ($67 million, net ofincome tax) loss was recognized in updates to the closed block projection. Of the $648 million loss, a $729 million ($474 million, net of income tax) loss wasrelated to reserves while an $81 million ($53 million, net of income tax) gain was associated with DAC.

Divested Businesses and Lag Elimination . Income (loss) before provision for income tax related to the divested businesses and lag elimination, excludingnet investment gains (losses) and net derivative gains (losses), decreased $861 million ($618 million, net of income tax) to a loss of $1.1 billion ($747 million,net of income tax) in 2017 from a loss of $197 million ($129 million, net of income tax) in 2016. Included in this decline was a decrease in total revenues of$272 million, before income tax, and an increase in total expenses of $589 million, before income tax. Divested businesses include activity primarily related tothe Separation. In addition, divested businesses for 2016 also include the financial impact of converting our Japan operations to calendar year-end reporting.

Discontinued Operations. Loss from discontinued operations, net of income tax, decreased $1.7 billion for the year ended December 31, 2017 to a loss of$986 million, net of income tax, from a loss of $2.7 billion, net of income tax, for the year ended December 31, 2016. Income (loss) from discontinuedoperations reflects the results of our former Brighthouse Financial segment. The favorable change in income (loss) from discontinued operations was primarilydue to a favorable change in net derivative gains (losses) of $3.1 billion, net of income tax, primarily driven by the impact of the 2016 annual actuarialassumption review on certain variable annuity products that contain embedded derivatives, partially offset by a loss of $1.2 billion, net of income tax, as a resultof the Separation in 2017. For further information regarding the Separation, see Note 3 of the Notes to the Consolidated Financial Statements.

Taxes. Income tax benefit for the year ended December 31, 2017 was $1.5 billion, or 42% of income from continuing operations before provision forincome tax, compared with income tax expense of $693 million, or 16% of income before provision for income tax, for the year ended December 31, 2016. Oureffective tax rates differ from the U.S. statutory rate of 35% due to non-taxable investment income, tax credits for low income housing, and foreign earningstaxed at lower rates than the U.S. statutory rate. Our 2017 results include the following tax items: (i) a net benefit of $1.3 billion related to the impact of U.S. TaxReform, which includes a net benefit of $1.6 billion (comprised of a $1.8 billion tax benefit and a $222 million increase in other divested expenses reflective of areduction in other receivables due to the revaluation of a tax receivable from Brighthouse) and an adjusted earnings charge of $298 million (comprised of a $254million tax charge and a $44 million, net of income tax, reduction in net investment income), (ii) a tax-related benefit of $540 million related to the Separation,(iii) a $41 million tax benefit from the finalization of certain tax audits, (iv) a net tax charge of $180 million as a result of the repatriation of approximately $3.0billion of cash following the post-Separation review of our capital needs, partially offset by a tax benefit associated with dividends from our non-U.S. operations,and (v) a tax benefit of $9 million related to the settlement of an audit in Argentina. Our 2016 results include a tax benefit of $110 million in Japan related to achange in tax rate, a tax charge of $26 million related to the repatriation of earnings from Japan and a tax charge of $19 million in Chile, related to a change intax rate. In addition, 2016 results include a one-time tax benefit of $46 million for the finalization of certain tax audits.

Adjusted Earnings . Adjusted earnings available to common shareholders increased $202 million, net of income tax, to $4.2 billion, net of income tax, forthe year ended December 31, 2017 from $4.0 billion, net of income tax, for the year ended December 31, 2016.

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Reconciliationofincome(loss)fromcontinuingoperations,netofincometax,toadjustedearningsavailabletocommonshareholders

Year Ended December 31, 2018

U.S. Asia LatinAmerica EMEA MetLife Holdings Corporate &

Other Total

(In millions)

Net income (loss)$ 2,755 $ 1,547 $ 477 $ 296 $ 1,016 $ (963) $ 5,128

Less: Income (loss) from discontinued operations, net of income tax— — — — — — —

Income (loss) from continuing operations, net of income tax$ 2,755 $ 1,547 $ 477 $ 296 $ 1,016 $ (963) $ 5,128

Less: Net investment gains (losses)(72) 142 18 5 (164) (227) (298)

Less: Net derivative gains (losses)268 312 (64) 28 263 44 851

Less: Other adjustments to continuing operations (1)(259) (29) (94) (21) (401) (137) (941)

Less: Provision for income tax (expense) benefit14 (115) 25 7 63 (80) (86)

Adjusted earnings $ 2,804 $ 1,237 $ 592 $ 277 $ 1,255 (563) 5,602Less: Preferred stock dividends 141 141Adjusted earnings available to common shareholders $ (704) $ 5,461

Year Ended December 31, 2017

U.S. Asia LatinAmerica EMEA MetLife Holdings Corporate &

Other Total

(In millions)

Net income (loss)$ 2,001 $ 1,298 $ 613 $ 301 $ 914 $ (1,107) $ 4,020

Less: Income (loss) from discontinued operations, net of income tax— — — — — (986) (986)

Income (loss) from continuing operations, net of income tax$ 2,001 $ 1,298 $ 613 $ 301 $ 914 $ (121) $ 5,006

Less: Net investment gains (losses)180 128 (47) (10) 71 (630) (308)

Less: Net derivative gains (losses)(21) 31 108 32 (339) (401) (590)

Less: Other adjustments to continuing operations (1)(197) (43) 8 17 (337) (1,070) (1,622)

Less: Provision for income tax (expense) benefit12 (47) (41) (35) 337 2,962 3,188

Adjusted earnings $ 2,027 $ 1,229 $ 585 $ 297 $ 1,182 (982) 4,338Less: Preferred stock dividends 103 103Adjusted earnings available to common shareholders $ (1,085) $ 4,235

Adjusted earnings available to common shareholders on a constant currency basis $ 2,027 $ 1,235 $ 572 $ 297 $ 1,182 $ (1,085) $ 4,228

Year Ended December 31, 2016

U.S. Asia LatinAmerica EMEA MetLife Holdings Corporate &

Other Total

(In millions)

Net income (loss)$ 1,756 $ 1,420 $ 629 $ 311 $ 300 $ (3,562) $ 854

Less: Income (loss) from discontinued operations, net of income tax— — — — — (2,734) (2,734)

Income (loss) from continuing operations, net of income tax$ 1,756 $ 1,420 $ 629 $ 311 $ 300 $ (828) $ 3,588

Less: Net investment gains (losses)(15) 230 93 42 182 (215) 317

Less: Net derivative gains (losses)53 (47) 3 24 (757) 34 (690)

Less: Other adjustments to continuing operations (1)(263) 26 58 33 (50) (285) (481)

Less: Provision for income tax (expense) benefit85 (13) (68) (61) 219 144 306

Adjusted earnings $ 1,896 $ 1,224 $ 543 $ 273 $ 706 (506) 4,136Less: Preferred stock dividends 103 103Adjusted earnings available to common shareholders $ (609) $ 4,033

Adjusted earnings available to common shareholders on a constant currency basis $ 1,896 $ 1,216 $ 541 $ 261 $ 706 $ (609) $ 4,011

__________________

(1) See definitions and components of adjusted revenues and adjusted expenses under “— Non-GAAP and Other Financial Disclosures.” Further, see “—Reconciliation of revenues to adjusted revenues and expenses to adjusted expenses” for additional details on these adjustments by financial statement lineitem.

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Reconciliationofrevenuestoadjustedrevenuesandexpensestoadjustedexpenses

Year Ended December 31, 2018

U.S. Asia LatinAmerica EMEA MetLife Holdings Corporate & Other Total

(In millions)

Total revenues$ 36,959 $ 11,969 $ 5,000 $ 2,491 $ 10,762 $ 760 $ 67,941

Less: Adjustments from total revenues to adjusted revenues, in the lineitems indicated: Net investment gains (losses)

(72) 142 18 5 (164) (227) (298)Net derivative gains (losses)

268 312 (64) 28 263 44 851Premiums

— — — — — — —Universal life and investment-type product policy fees

— (6) 7 25 94 — 120Net investment income

(274) (262) (45) (488) (157) 9 (1,217)Other revenues

— 19 — — — 305 324Total adjusted revenues $ 37,037 $ 11,764 $ 5,084 $ 2,921 $ 10,726 $ 629 $ 68,161

Total expenses$ 33,482 $ 9,759 $ 4,310 $ 2,114 $ 9,501 $ 2,468 $ 61,634

Less: Adjustments from total expenses to adjusted expenses, in the lineitems indicated: Policyholder benefits and claims and policyholder dividends

(11) (3) 40 31 117 — 174Interest credited to policyholder account balances

(4) (218) 21 (479) — — (680)Capitalization of DAC

— — (1) — — — (1)Amortization of DAC and VOBA

— (5) — (1) 221 — 215Amortization of negative VOBA

— (1) — — — — (1)Interest expense on debt

— — — — — 63 63Other expenses

— 7 (4) 7 — 388 398Total adjusted expenses $ 33,497 $ 9,979 $ 4,254 $ 2,556 $ 9,163 $ 2,017 $ 61,466

Year Ended December 31, 2017

U.S. Asia LatinAmerica EMEA MetLife Holdings Corporate & Other Total

(In millions)

Total revenues$ 31,810 $ 11,875 $ 5,118 $ 3,729 $ 11,005 $ (1,229) $ 62,308

Less: Adjustments from total revenues to adjusted revenues, in the lineitems indicated: Net investment gains (losses)

180 128 (47) (10) 71 (630) (308)Net derivative gains (losses)

(21) 31 108 32 (339) (401) (590)Premiums

— — — — — (347) (347)Universal life and investment-type product policy fees

— 13 — 26 98 (34) 103Net investment income

(195) 314 69 848 (181) (36) 819Other revenues

— 22 — — — (135) (113)Total adjusted revenues $ 31,846 $ 11,367 $ 4,988 $ 2,833 $ 11,356 $ 354 $ 62,744

Total expenses$ 28,797 $ 9,910 $ 4,308 $ 3,334 $ 9,881 $ 2,542 $ 58,772

Less: Adjustments from total expenses to adjusted expenses, in the lineitems indicated: Policyholder benefits and claims and policyholder dividends

5 20 (36) 28 322 (135) 204Interest credited to policyholder account balances

(3) 345 105 814 — 33 1,294Capitalization of DAC

— — — — — 34 34Amortization of DAC and VOBA

— 9 — (1) (68) 93 33Amortization of negative VOBA

— (9) — — — — (9)Interest expense on debt

— — — — — (16) (16)Other expenses

— 27 (8) 16 — 509 544Total adjusted expenses $ 28,795 $ 9,518 $ 4,247 $ 2,477 $ 9,627 $ 2,024 $ 56,688

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Year Ended December 31, 2016

U.S. Asia LatinAmerica EMEA MetLife Holdings Corporate & Other Total

(In millions)

Total revenues$ 29,254 $ 11,973 $ 4,816 $ 3,810 $ 11,710 $ (776) $ 60,787

Less: Adjustments from total revenues to adjusted revenues, in the lineitems indicated: Net investment gains (losses)

(15) 230 93 42 182 (215) 317Net derivative gains (losses)

53 (47) 3 24 (757) 34 (690)Premiums

— 426 — — — (729) (303)Universal life and investment-type product policy fees

— 98 — 24 92 (62) 152Net investment income

(264) 100 48 911 (274) (168) 353Other revenues

— 8 — — — 34 42Total adjusted revenues $ 29,480 $ 11,158 $ 4,672 $ 2,809 $ 12,467 $ 330 $ 60,916

Total expenses$ 26,607 $ 10,061 $ 3,961 $ 3,396 $ 11,337 $ 1,144 $ 56,506

Less: Adjustments from total expenses to adjusted expenses, in the lineitems indicated: Policyholder benefits and claims and policyholder dividends

2 347 (86) 11 166 (735) (295)Interest credited to policyholder account balances

(3) 70 85 878 — 58 1,088Capitalization of DAC

— (105) — — — 104 (1)Amortization of DAC and VOBA

— 114 — — (312) (127) (325)Amortization of negative VOBA

— (47) — — — — (47)Interest expense on debt

— — — — — (50) (50)Other expenses

— 227 (9) 13 14 110 355Total adjusted expenses $ 26,608 $ 9,455 $ 3,971 $ 2,494 $ 11,469 $ 1,784 $ 55,781

ConsolidatedResults—AdjustedEarnings

YearEndedDecember31,2018ComparedwiththeYearEndedDecember31,2017

Unless otherwise stated, all amounts discussed below are net of income tax.

Overview . The primary drivers of the increase in adjusted earnings were higher net investment income due to a larger asset base and higher investmentyields, the favorable impact of U.S. Tax Reform, other favorable tax items, favorable refinements to DAC and certain insurance-related liabilities, lowerexpenses and favorable underwriting, partially offset by higher interest credited expenses and the net unfavorable change from our annual actuarial assumptionreview.

Foreign Currency . Changes in foreign currency exchange rates had a $ 7 million negative impact on adjusted earnings for 2018 compared to 2017. Unlessotherwise stated, all amounts discussed below are net of foreign currency fluctuations. Foreign currency fluctuations can result in significant variances in thefinancial statement line items.

U.S. Tax Reform. The changes from U.S. Tax Reform resulted in a net increase in adjusted earnings of $ 477 million for 2018 compared to 2017, whichincludes a slight reduction in net investment income related to tax credit partnership investments. Our 2018 results include a tax benefit of $303 million,primarily related to the lower tax rate. Our 2017 results include a tax charge of $254 million to reflect the enactment of U.S. Tax Reform. Our 2018 results alsoinclude an additional tax charge of $78 million to reflect a revision to the estimate of this enactment .

Business Growth . We benefited from positive net flows from many of our businesses, which increased our invested asset base. Growth in the investmentportfolios of our U.S., Asia, and Latin America segments resulted in higher net investment income. However, this was partially offset by a correspondingincrease in interest credited expenses on certain insurance-related liabilities. In our U.S. segment, an increase in average premium per policy in our auto business,partially offset by a decrease in exposures, improved adjusted earnings. Business growth also drove an increase in commissions and other variable expenses,which were partially offset by higher DAC capitalization. The combined impact of the items affecting our business growth resulted in a $ 153 million increase inadjusted earnings.

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Market Factors . Market factors, including interest rate levels, variability in equity market returns, and foreign currency exchange rate fluctuations,continued to impact our results; however, certain impacts were mitigated by derivatives used to hedge these risks. Excluding the impact of changes in foreigncurrency exchange rates on net investment income in our non-U.S. segments and changes in inflation rates on our inflation-indexed investments, investmentyields increased. Investment yields were positively affected by higher yields on fixed income securities and mortgage loans, income on derivatives, returns onreal estate investments and a reduction in investment expenses. These increases were partially offset by lower returns on private equities, driven by a decrease inpartnership distributions, lower returns on hedge funds and lower returns on fair value option securities (“FVO Securities”). The improvement in yields wasmore than offset by the impact of higher average interest credited rates, which drove an increase in interest credited expenses, primarily in our U.S. segment. Thechanges in market factors discussed above resulted in a $ 79 million decrease in adjusted earnings.

Underwriting, Actuarial Assumption Review and Other Insurance Adjustments . Favorable underwriting resulted in a $ 74 million increase in adjustedearnings primarily as a result of lower catastrophe losses, as well as favorable morbidity in our U.S. and MetLife Holdings segments, partially offset byunfavorable claims experience in our EMEA and Asia segments, as well as higher non-catastrophe losses in our Property & Casualty business. In addition,favorable mortality in our Latin America and U.S. segments was partially offset by unfavorable mortality in our MetLife Holdings segment. Our annual actuarialassumption review resulted in a decrease of $ 121 million in adjusted earnings when compared to 2017, primarily due to less favorable assumption changes inour MetLife Holdings and Asia segments. Refinements to DAC and certain insurance-related liabilities, which were recorded in both 2018 and 2017 across all ofour segments, resulted in a $ 103 million increase in adjusted earnings, most notably in our U.S. segment.

Expenses . Our unit cost initiative improved expense margins and contributed to a $ 101 million decrease in expenses from lower (i) Separation-relatedexpenses, (ii) employee-related costs, including expenses related to pension and postretirement benefits, and (iii) expenses for interest on certain tax positions, aswell as expenses incurred in 2017 related to the guaranty fund assessment for Penn Treaty. These decreases were partially offset by higher expenses in 2018associated with enterprise-wide initiatives, including the continued investment in our unit cost initiative.

Taxes and Other Tax-Related Items . Our effective tax rates differ from the U.S. statutory rate of 21% typically due to nontaxable investment income, taxcredits for investments in low income housing and foreign earnings taxed at different rates than the U.S. statutory rate. This incremental tax benefit was lower in2018 compared to 2017 which resulted in a $47 million decrease in adjusted earnings. Our results for 2018 include the following tax items: (i) a net tax-relatedbenefit of $366 million related to the settlement of tax audits, which included a $349 million benefit related to the tax treatment of a wholly-owned U.K.investment subsidiary of MLIC (comprised of a $168 million tax benefit and a $181 million interest benefit), (ii) a benefit of $36 million related to a non-cashtransfer of assets from a wholly-owned U.K. investment subsidiary to MLIC, (iii) a charge of $17 million related to a tax adjustment in Chile, and (iv) a$5 million charge in Colombia to establish a deferred tax liability due to a change in tax status. Our results for 2017 include the following tax items: (i) a benefitof $41 million related to the finalization of certain tax audits, (ii) charges of $180 million related to the repatriation of approximately $3.0 billion of cashfollowing the post-Separation review of our capital needs, partially offset by a tax benefit associated with dividends from our non-U.S. operations , and (iii) abenefit of $9 million related to the settlement of a tax audit in Argentina. Other tax-related items in both 2018 and 2017, primarily due to the changes in thevaluation of the peso in Argentina, resulted in a $45 million increase in adjusted earnings.

YearEndedDecember31,2017ComparedwiththeYearEndedDecember31,2016

Unless otherwise stated, all amounts discussed below are net of income tax.

Overview. The primary drivers of the increase in adjusted earnings were annuities reinsurance activity with Brighthouse, the impact of 2017 and 2016refinements made to DAC and certain insurance-related liabilities, and the impact in both 2017 and 2016 of our annual actuarial assumption review, partiallyoffset by the negative impact of U.S. Tax Reform and other unfavorable tax items.

Foreign Currency. Changes in foreign currency exchange rates had a $22 million negative impact on adjusted earnings for 2017 compared to 2016. Unlessotherwise stated, all amounts discussed below are net of foreign currency fluctuations. Foreign currency fluctuations can result in significant variances in thefinancial statement line items.

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Business Growth . An increase of $70 million in adjusted earnings was attributable to business growth. We benefited from positive net flows from many ofour businesses. As a result, growth in the investment portfolios of our U.S., Asia and Latin America segments generated higher net investment income. However,this was partially offset by a corresponding increase in interest credited expense on certain insurance-related liabilities. In our U.S. segment, an increase inaverage premium per policy in our auto and homeowners business, partially offset by a decrease in exposures, improved adjusted earnings. Growth in oursegments abroad also contributed to the increase in adjusted earnings. In our MetLife Holdings segment, negative net flows contributed to a decrease in averageseparate account balances and, consequently, asset-based fee income. Improved results from our start-up operations increased adjusted earnings.

Market Factors. Market factors, including interest rate levels, variability in equity market returns, and foreign currency exchange rate fluctuations,continued to impact our results; however, certain impacts were mitigated by derivatives used to hedge these risks. Excluding the impact of changes in foreigncurrency exchange rates on reported net investment income in our non-U.S. segments and changes in inflation rates on our inflation-indexed investments,investment yields decreased. Investment yields were negatively affected by lower prepayment fees, lower derivative income and lower returns on real estate jointventures. In addition, earnings on our securities lending program decreased, which primarily resulted from lower margins due to a flatter yield curve, and lowerreturns on alternative investments (excluding the impact of U.S. Tax Reform). These decreases in net investment income were partially offset by higher returnson other limited partnership interests, driven by improvements in equity market performance. In addition, higher interest credited expenses, primarily driven byour U.S. segment as a result of a higher average interest credited rate, reduced adjusted earnings. These decreases were partially offset by higher asset-based feesin our MetLife Holdings segment as a result of favorable equity market performance in 2017. The changes in market factors discussed above resulted in a $69million decrease in adjusted earnings.

Underwriting, Actuarial Assumption Review and Other Insurance Adjustments. Unfavorable underwriting resulted in a $13 million decrease in adjustedearnings primarily as a result of unfavorable claims experience, higher catastrophe losses and unfavorable mortality, largely offset by favorable morbidity andfavorable development of prior year non-catastrophe losses in our Property & Casualty business. Favorable morbidity in our U.S. segment was partially offset byunfavorable morbidity in our MetLife Holdings segment. Higher lapses and claims in Japan, partially offset by favorable claims experience in other countries,drove unfavorable claims experience in our Asia segment. Unfavorable mortality in our Latin America and U.S. segments was partially offset by favorablemortality in our MetLife Holdings segment. The impact in both 2017 and 2016 of our annual actuarial assumption review resulted in a $166 million increase inadjusted earnings, primarily due to favorable DAC unlockings in 2017 compared to unfavorable DAC unlockings in 2016 in our MetLife Holdings segment.Refinements to DAC and certain insurance-related liabilities, which were recorded in both 2017 and 2016 across our segments, resulted in a $191 millionincrease in adjusted earnings. This includes favorable 2017 refinements of (i) a $36 million DAC adjustment related to certain participating whole life businessassumed from Brighthouse; and (ii) a reserve adjustment resulting from modeling improvements in the reserving process of $55 million in our life business, aswell as (iii) a 2017 unfavorable charge of $90 million to increase certain RIS policy reserves . This also includes an unfavorable 2016 refinement of $65 millionresulting from modeling improvements in the reserving process.

Expenses. A $46 million decrease in expenses was primarily driven by lower costs as a result of the U.S. Retail Advisor Force Divestiture, a decrease incertain corporate expenses, and favorable net adjustments to certain reinsurance assets and liabilities, partially offset by (i) Separation-related costs, (ii) higheremployee-related expenses, (iii) higher costs associated with corporate initiatives and projects (including leasehold impairments and costs related to our unit costinitiative), (iv) an increase in asbestos and litigation reserves, and (v) an increase in expenses incurred related to the guaranty fund assessment for Penn Treaty.

Interest Expense on Debt. Interest expense on debt decreased by $35 million , mainly due to the maturity of $1.25 billion of our senior notes in June 2016.

Taxes. Our effective tax rates differ from the U.S. statutory rate of 35% due to non-taxable investment income, tax credits for investments in low incomehousing, and foreign earnings taxed at lower rates than the U.S. statutory rate. This incremental tax benefit was lower in 2017 compared to 2016 which resultedin a $7 million decrease in adjusted earnings. Our results for 2017 include the following tax items: (i) a charge of $298 million related to the impact of U.S. TaxReform, which includes a $254 million tax charge and a $44 million, net of income tax, reduction in net investment income, (ii) a tax benefit of $41 millionrelated to the finalization of certain tax audits, (iii) tax charges of $180 million related to the repatriation of offshore earnings, and (iv) a tax benefit of $9 millionrelated to the settlement of an audit in Argentina. Our results for 2016 include the following tax items: (i) a tax benefit of $25 million in Japan and a tax chargeof $12 million in Chile, both related to changes in tax rates that pertain to periods prior to 2016, (ii) a tax charge of $26 million related to the repatriation ofearnings from Japan, and (iii) a tax benefit of $46 million for the finalization of certain tax audits.

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Other. In connection with the Separation, annuities reinsurance activity with Brighthouse increased adjusted earnings by $267 million . This favorableimpact was primarily due to the recapture in 2016 of certain assumed single-premium deferred annuity reinsurance agreements, and the elimination of interestcredited payments on the related reinsurance payable, as well as lower DAC amortization. This increase was partially offset by the net unfavorable impact in2017 from the recapture and novation of, as well as refinements to, assumed and ceded agreements covering certain variable annuity business.

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SegmentResultsandCorporate&Other

U.S.

Business Overview. Sales increased compared to 2017, primarily driven by our RIS business, as higher sales of pension risk transfers (driven by a largetransaction in the second quarter of 2018), stable value, specialized life insurance and structured settlement products were partially offset by lower fundingagreement issuances. Changes in premiums for the RIS business were almost entirely offset by the related changes in policyholder benefits and claims. Saleswere slightly lower compared to 2017 in the Group Benefits business, as strong sales in our voluntary products were offset by the impact of strong jumbo casesales in our core products in 2017. The resulting increase in premiums, fees and other revenues was partially offset by the loss of a large dental contract in thesecond quarter of 2017. In our Property & Casualty business, sales increased over 2017. In addition, the number of exposures decreased from 2017, reflectingmanagement actions to improve the quality of the business.

Years Ended December 31,

2018 2017 2016

(In millions)

Adjusted revenues Premiums $ 28,186 $ 23,632 $ 21,501Universal life and investment-type product policy fees 1,053 1,012 989Net investment income 6,977 6,396 6,206Other revenues 821 806 784

Total adjusted revenues 37,037 31,846 29,480Adjusted expenses Policyholder benefits and claims and policyholder dividends 27,765 23,627 21,591Interest credited to policyholder account balances 1,790 1,474 1,302Capitalization of DAC (449) (458) (471)Amortization of DAC and VOBA 477 459 471Interest expense on debt 12 11 9Other expenses 3,902 3,682 3,706

Total adjusted expenses 33,497 28,795 26,608Provision for income tax expense (benefit) 736 1,024 976

Adjusted earnings $ 2,804 $ 2,027 $ 1,896

Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017

Unless otherwise stated, all amounts discussed below are net of income tax.

U.S. Tax Reform . The changes from U.S. Tax Reform resulted in an increase in adjusted earnings of $417 million for 2018 compared to 2017.

Business Growth . Net investment income improved as a result of higher average invested assets due to the impact of increased premiums and deposits,primarily due to pension risk transfer sales, partially offset by a decrease in net flows from funding agreements. However, consistent with the growth inaverage invested assets from increased premiums, interest credited expenses on long-duration and deposit-type liabilities increased. An increase in averagepremium per policy in our auto business, partially offset by the decrease in exposures, improved adjusted earnings. Higher volume-related, direct and premiumtax expenses were partially offset by lower pension and postretirement expenses. This net increase in expenses, coupled with the increase due to the 2018reinstatement of the annual health insurer fee under the PPACA, were more than offset by a corresponding increase in premiums, fees and other revenues. Thecombined impact of the items affecting our business growth increased adjusted earnings by $171 million.

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Market Factors . Market factors, including interest rate levels, variability in equity market returns and foreign currency exchange rate fluctuations,continued to impact our results; however, certain impacts were mitigated by derivatives used to hedge these risks. Investment yields increased, primarily dueto higher yields on fixed income securities and mortgage loans, coupled with higher returns on real estate investments, partially offset by lower returns onprivate equities, as a result of a decrease in partnership distributions. The net increase in investment yields was more than offset by the impact of higheraverage interest credited rates on both our long-duration and deposit-type liabilities, which drove an increase in interest credited expenses. The changes inmarket factors discussed above resulted in an $86 million decrease in adjusted earnings.

Underwriting and Other Insurance Adjustments . In our Property & Casualty business, catastrophe-related losses decreased $88 million as compared to2017. Losses from our commercial business increased $26 million. Non-catastrophe claim costs increased $21 million, as a result of higher auto andhomeowner severities, as well as an increase in auto frequencies, partially offset by lower homeowner frequencies. As a result of overall lower claim activity,loss adjustment expenses decreased, increasing adjusted earnings by $15 million. In addition, less favorable development of prior period losses decreasedadjusted earnings by $8 million. Favorable claims experience in our Group Benefits business resulted in a $47 million increase in adjusted earnings. This wasprimarily driven by favorable renewal results in our group disability business, as well as lower claim incidence and severity, coupled with growth andfavorable claims experience in our accident & health business, partially offset by less favorable claims experience in our dental, vision and individualdisability businesses. Mortality results were flat as less favorable claim experience in our term life business was offset by favorable mortality in our universallife and accidental death & dismemberment businesses. Favorable mortality in our specialized life insurance, pension risk transfer and structured settlementbusinesses increased adjusted earnings by $57 million. Refinements to certain insurance and other liabilities, which were recorded in both 2018 and 2017,resulted in a $131 million increase in adjusted earnings. Such refinements include favorable insurance adjustments resulting from reserve and DAC modelingimprovements in our individual disability insurance business in 2018 and a charge in 2017 to increase certain RIS policy reserves.

Year Ended December 31, 2017 Compared with the Year Ended December 31, 2016

Unless otherwise stated, all amounts discussed below are net of income tax.

Business Growth. The impact of deposits, net flows from funding agreements and increased premiums in 2017 resulted in higher average invested assets,improving net investment income. However, consistent with the growth in average invested assets from increased premiums, interest credited on long-durationcontracts increased. An increase in average premium per policy in both our auto and homeowners businesses, partially offset by the decrease in exposures,improved adjusted earnings. The remaining increase in premiums, fees and other revenues, coupled with a decline in direct expenses, was partially offset byhigher volume-related expenses. The 2017 abatement of the annual health insurer fee under PPACA was offset by a corresponding decrease in premiums, feesand other revenues. The combined impact of the items discussed above increased adjusted earnings by $198 million .

Market Factors. Market factors, including interest rate levels, variability in equity market returns and foreign currency exchange rate fluctuations,continued to impact our results; however, certain impacts were mitigated by derivatives used to hedge these risks. Investment yields decreased, primarily dueto lower prepayment fees, derivative income and lower returns on real estate and real estate joint ventures. In addition, lower investment earnings on oursecurities lending program resulted primarily from lower margins, due to a flatter yield curve. These decreases in investment yields were largely offset byhigher returns on other limited partnership interests, primarily in private equities, driven by improvements in equity market performance. Higher averageinterest credited rates drove an increase in interest credited expenses; however, this was partially offset by an increase in adjusted earnings due to a decrease inthe crediting rate on certain long-duration insurance contracts. The changes in market factors discussed above resulted in a $74 million decrease in adjustedearnings.

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Underwriting and Other Insurance Adjustments. Favorable prior year reserve development, lower utilization and the positive impact of pricing actions inour dental business, as well as favorable claims experience in our accident & health and group disability businesses were partially offset by slightly lessfavorable claims experience in our individual disability business, which resulted in a $120 million increase in adjusted earnings. Less favorable mortality in2017, mainly due to less favorable claim experience in our group life businesses resulted in a $20 million decrease in adjusted earnings. Favorable mortalityfrom our pension risk transfer and structured settlement businesses was mostly offset by less favorable mortality in our specialized life insurance and incomeannuities businesses. In our Property & Casualty business, catastrophe-related losses increased $24 million in 2017, primarily due to severe storm activity.Non-catastrophe claim costs increased slightly as a result of higher auto-related severities and higher homeowners-related frequencies, mostly offset by lowerauto-related frequencies and lower homeowners-related severities. Favorable development of prior year non-catastrophe losses of $12 million increasedadjusted earnings. Refinements to certain insurance and other liabilities, which were recorded in both 2017 and 2016, resulted in a $75 million decrease inadjusted earnings, which included a $90 million charge in 2017 to increase certain RIS policy reserves.

Asia

Business Overview . Sales increased compared to 2017 primarily driven by growth in foreign currency-denominated annuity and life products as well asaccident & health product sales in Japan. This was partially offset by a decrease in sales in Korea, as a result of the continued negative impact of regulatorychanges on sales of savings retirement products, as well as a decrease in life sales in Hong Kong.

Years Ended December 31,

2018 2017 2016

(In millions)

Adjusted revenues Premiums $ 6,766 $ 6,755 $ 6,902Universal life and investment-type product policy fees 1,630 1,584 1,488Net investment income 3,317 2,985 2,707Other revenues 51 43 61

Total adjusted revenues 11,764 11,367 11,158Adjusted expenses Policyholder benefits and claims and policyholder dividends 5,326 5,075 5,211Interest credited to policyholder account balances 1,465 1,351 1,298Capitalization of DAC (1,915) (1,710) (1,668)Amortization of DAC and VOBA 1,302 1,300 1,236Amortization of negative VOBA (39) (111) (208)Other expenses 3,840 3,613 3,586

Total adjusted expenses 9,979 9,518 9,455Provision for income tax expense (benefit) 548 620 479

Adjusted earnings $ 1,237 $ 1,229 $ 1,224

Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017

Unless otherwise stated, all amounts discussed below are net of income tax.

Foreign Currency . Changes in foreign currency exchange rates increased adjusted earnings by $ 6 million for 2018 compared to 2017, primarily due tothe strengthening of the Korean won against the U.S. dollar. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations.Foreign currency fluctuations can result in significant variances in the financial statement line items.

U.S. Tax Reform . The changes from U.S. Tax Reform resulted in an increase in adjusted earnings of $47 million for 2018 compared to 2017.

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Business Growth . Asia’s premiums, fees and other revenues remained flat compared to 2017 as growth in our foreign currency-denominated life andaccident & health products was offset by the decline in yen-denominated life products in Japan. Changes in premiums from these products were partially offsetby related changes in policyholder benefits. Positive net flows in Japan and Korea resulted in higher average invested assets, which improved net investmentincome. Business growth also drove an increase in commissions and other variable expenses, which were partially offset by higher DAC capitalization. Thecombined impact of the items affecting our business growth improved adjusted earnings by $ 109 million .

Market Factors . Market factors, including interest rate levels and variability in equity market returns, continued to impact our results; however, certainimpacts were mitigated by derivatives used to hedge these risks. Investment results were favorably impacted by higher returns on real estate investments,derivative income, and yields on mortgage loans. In addition, higher earnings from our operating joint venture in China improved net investment income. Anincrease in higher-yielding fixed income securities supporting U.S. dollar-denominated products sold in Japan was partially offset by lower yields on fixedincome securities in Korea. Investment yields were negatively impacted by increased investment expenses and lower returns on hedge funds. The net increasein investment yields was partially offset by an increase in interest credited expenses on certain insurance liabilities. The combined impact of the itemsdiscussed above increased adjusted earnings by $7 million.

Underwriting, Actuarial Assumption Review and Other Insurance Adjustments . Higher lapses and claims in Japan decreased adjusted earnings by$48 million. Our annual actuarial assumption review resulted in a decrease of $63 million in adjusted earnings when compared to 2017. Refinements to certaininsurance and other liabilities, which were recorded in both 2018 and 2017, resulted in a $31 million decrease in adjusted earnings. Our results for 2018include favorable liability refinements of $11 million in Japan and $6 million in Australia, largely offset by an unfavorable liability refinement of $16 millionin Bangladesh. Our 2017 results include a favorable refinement of $12 million related to reinsurance receivables in Australia.

Expenses and Taxes . Higher expenses, primarily driven by higher employee-related and project costs, as well as an increase in corporate overhead costs,reduced adjusted earnings by $24 million. Various tax items in both 2018 and 2017 resulted in a $5 million increase in adjusted earnings.

Year Ended December 31, 2017 Compared with the Year Ended December 31, 2016

Unless otherwise stated, all amounts discussed below are net of income tax.

Foreign Currency. Changes in foreign currency exchange rates decreased adjusted earnings by $8 million for 2017 compared to 2016 primarily due to theweakening of the Japanese yen, partially offset by the strengthening of the Korean won, against the U.S. dollar. Unless otherwise stated, all amounts discussedbelow are net of foreign currency fluctuations. Foreign currency fluctuations can result in significant variances in the financial statement line items.

Business Growth. Asia’s premiums and policy fee income increased from 2016 mainly driven by growth in our foreign currency-denominated life andaccident & health businesses in Japan, as well as our group insurance business in Australia. Changes in premiums for these businesses were partially offset byrelated changes in policyholder benefits. Positive net flows in Japan and Korea resulted in higher average invested assets, which improved net investmentincome. The combined impact of the items discussed above improved adjusted earnings by $61 million .

Market Factors. Market factors, including interest rate levels and variability in equity market returns continued to impact our results; however, certainimpacts were mitigated by derivatives used to hedge these risks. Investment results were favorably impacted by higher returns on other limited partnershipinterests, driven by improvements in equity market performance, and higher income on real estate investments, which included a lease termination fee. Theseincreases were partially offset by the unfavorable impact of lower interest rates on fixed maturity securities AFS in Japan. The decrease in returns from lowerinterest rates in Japan was partially offset by the favorable impact of increased sales of foreign currency-denominated fixed annuities in Japan, primarily in itsAustralian dollar-denominated portfolio, which drove an increase in higher yielding foreign currency-denominated fixed maturity securities AFS. Thecombined impact of the items discussed above increased adjusted earnings by $45 million .

Underwriting, Actuarial Assumption Review and Other Insurance Adjustments. Higher lapses and claims in Japan, partially offset by favorable claimsexperience in other countries, decreased adjusted earnings by $51 million . The impact in both 2017 and 2016 of our annual actuarial assumption reviewresulted in a slight increase in adjusted earnings. Refinements to certain insurance and other liabilities, which were recorded in both 2017 and 2016, resulted ina $69 million increase in adjusted earnings, which includes a $12 million favorable refinement in 2017 of the $44 million charge in 2016 related to reinsurancereceivables in Australia.

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Expenses and Taxes. Higher expenses, primarily driven by project costs, reduced adjusted earnings by $11 million . Results for 2017 include a charge of$70 million related to a U.S. tax on dividends from our Japan operations. Results for 2016 include a $25 million tax benefit related to a change in the corporatetax rate in Japan (which includes a benefit of $20 million that pertains to prior periods).

LatinAmerica

Business Overview . Total sales for Latin America increased compared to 2017, driven by higher individual accident & health, credit life and retirementproduct sales in Chile, partially offset by lower pension and group medical sales in Mexico.

Years Ended December 31,

2018 2017 2016

(In millions)

Adjusted revenues Premiums $ 2,760 $ 2,693 $ 2,529Universal life and investment-type product policy fees 1,050 1,044 1,025Net investment income 1,239 1,219 1,084Other revenues 35 32 34

Total adjusted revenues 5,084 4,988 4,672Adjusted expenses Policyholder benefits and claims and policyholder dividends 2,602 2,535 2,443Interest credited to policyholder account balances 394 369 328Capitalization of DAC (377) (364) (321)Amortization of DAC and VOBA 209 224 184Amortization of negative VOBA (1) (1) (1)Interest expense on debt 6 5 2Other expenses 1,421 1,479 1,336

Total adjusted expenses 4,254 4,247 3,971Provision for income tax expense (benefit) 238 156 158

Adjusted earnings $ 592 $ 585 $ 543

Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017

Unless otherwise stated, all amounts discussed below are net of income tax.

Foreign Currency . Changes in foreign currency exchange rates decreased adjusted earnings by $ 13 million for 2018 compared to 2017 mainly due to theweakening of the Mexican and Argentine pesos against the U.S. dollar. Unless otherwise stated, all amounts discussed below are net of foreign currencyfluctuations. Foreign currency fluctuations can result in significant variances in the financial statement line items.

U.S. Tax Reform . The changes from U.S. Tax Reform resulted in a decrease in adjusted earnings of $ 40 million for 2018 compared to 2017.

Business Growth . Latin America experienced growth across several lines of business primarily within Chile and Mexico. This growth resulted inincreased premiums and policy fee income, which was largely offset by related changes in policyholder benefits. Positive net flows, primarily from Chile andArgentina, resulted in an increase in average invested assets and generated higher net investment income. This was partially offset by an increase in interestcredited expenses on certain insurance liabilities. Business growth also drove an increase in commissions, which was partially offset by higher DACcapitalization. The combined impact of the items affecting our business growth increased adjusted earnings by $ 10 million .

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Market Factors . Market factors, including interest rate levels and variability in equity market returns, continued to impact our results; however, certainimpacts were mitigated by derivatives used to hedge these risks. Changes in market factors resulted in an $ 8 million decrease in adjusted earnings despitehigher investment yields. This was primarily due to lower returns on FVO Securities in Chile and higher interest credited expenses, partially offset byimproved yields on fixed income securities in Mexico and Chile, as well as higher derivative income in Chile.

Underwriting, Actuarial Assumption Review and Other Insurance Adjustments . Favorable underwriting resulted in a $ 57 million increase to adjustedearnings primarily driven by lower claims experience in Mexico. Our annual actuarial assumption review resulted in a $ 13 million increase to adjustedearnings when compared to 2017. In addition, refinements to certain insurance liabilities and other adjustments in both 2018 and 2017, primarily in Brazil,Mexico and Chile, resulted in an $ 18 million decrease to adjusted earnings.

Expenses and Taxes . A $ 17 million decrease in expenses was primarily the result of a 2018 reduction of a litigation reserve in Argentina . Our results for2018 include a $17 million tax charge related to a tax adjustment in Chile, a $5 million tax charge in Colombia to establish a deferred tax liability due to achange in tax status, a $2 million tax charge as a result of tax reform legislation also in Colombia, partially offset by a $4 million tax benefit due to inflation inArgentina. Our results for 2017 include a $9 million tax benefit related to the settlement of a tax audit and a $4 million tax charge incurred as a result of taxreform legislation, both in Argentina. Other tax-related items in both 2018 and 2017, primarily due to the changes in the valuation of the peso in Argentina,resulted in a $14 million increase in adjusted earnings .

Year Ended December 31, 2017 Compared with the Year Ended December 31, 2016

Unless otherwise stated, all amounts discussed below are net of income tax.

Foreign Currency. Changes in foreign currency exchange rates resulted in a slight decrease to adjusted earnings for 2017 as compared to 2016 mainly dueto the weakening of the Mexican and Argentinean pesos against the U.S. dollar. Unless otherwise stated, all amounts discussed below are net of foreigncurrency fluctuations. Foreign currency fluctuations can result in significant variances in the financial statement line items.

Business Growth. Latin America experienced growth across several lines of business within Chile, Mexico and Brazil. This growth resulted in increasedpremiums and policy fee income which was partially offset by related changes in policyholder benefits. Positive net flows, primarily from Mexico and Chile,resulted in an increase in average invested assets and generated higher net investment income. This was partially offset by an increase in interest creditedexpense on certain insurance liabilities. Business growth also drove an increase in adjusted expenses and commissions, which were partially offset by higherDAC capitalization. The items discussed above resulted in an $ 86 million increase in adjusted earnings.

Market Factors. Market factors, including interest rate levels and variability in equity market returns continued to impact our results; however, certainimpacts were mitigated by derivatives used to hedge these risks. Changes in market factors resulted in a $19 million increase in adjusted earnings primarilydue to higher investment yields. The increase in investment yields was primarily driven by higher returns from FVO Securities in Chile and mortgage loans inMexico. These increases were largely offset by higher interest credited expenses and lower yields on fixed income securities in Chile and Argentina.

Underwriting, Actuarial Assumption Review and Other Insurance Adjustments. Unfavorable underwriting resulted in a $37 million decrease to adjustedearnings driven by higher claims experience in Mexico. The impact in both 2017 and 2016 of our annual actuarial assumption review resulted in a slightdecrease in adjusted earnings. In addition, refinements to certain insurance liabilities, primarily in the ProVida pension business, and other adjustments in both2017 and 2016 resulted in a $5 million increase to adjusted earnings.

Expenses and Taxes. Higher expenses, primarily driven by employee-related and marketing costs, decreased adjusted earnings by $48 million ascompared to 2016. Our results for 2017 include a $9 million tax benefit related to the settlement of a tax audit and a $4 million tax charge incurred as a resultof tax reform legislation, both in Argentina. Our results for 2016 included a tax charge of $12 million as a result of tax reform legislation in Chile (including acharge of $10 million that pertains to periods prior to 2016). Also, our results for 2016 included a tax charge of $11 million related to the 2015 filing of localtax returns in Mexico and Chile. Other tax-related items in both 2017 and 2016 resulted in a $6 million decrease in adjusted earnings, primarily driven by a2016 tax benefit due to inflation in Argentina.

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EMEA

Business Overview. Sales decreased in 2018 primarily due to the closure of the U.K. wealth management product to new business in the third quarter of2017 and a decline in sales of our employee benefits product in the Gulf region.

Years Ended December 31,

2018 2017 2016

(In millions)

Adjusted revenues Premiums $ 2,131 $ 2,061 $ 2,027Universal life and investment-type product policy fees 431 405 391Net investment income 293 309 318Other revenues 66 58 73

Total adjusted revenues 2,921 2,833 2,809Adjusted expenses Policyholder benefits and claims and policyholder dividends 1,127 1,077 1,067Interest credited to policyholder account balances 100 100 112Capitalization of DAC (468) (414) (403)Amortization of DAC and VOBA 434 357 408Amortization of negative VOBA (15) (19) (13)Other expenses 1,378 1,376 1,323

Total adjusted expenses 2,556 2,477 2,494Provision for income tax expense (benefit) 88 59 42

Adjusted earnings $ 277 $ 297 $ 273

Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017

Unless otherwise stated, all amounts discussed below are net of income tax.

Foreign Currency . The impact of changes in foreign currency exchange rates resulted in a slight increase in adjusted earnings for 2018 compared to 2017,primarily driven by the weakening of the U.S. dollar against the euro, the British pound, and the Polish zloty, almost entirely offset by the strengthening of theU.S. dollar against the Turkish lira. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations. Foreign currencyfluctuations can result in significant variances in the financial statement line items.

U.S. Tax Reform . The changes from U.S. Tax Reform resulted in a decrease in adjusted earnings of $21 million for 2018 as compared to 2017.

Business Growth . Growth from our credit life and accident & health businesses in Turkey and across several European markets resulted in a $25 millionincrease in adjusted earnings.

Underwriting, Actuarial Assumption Review and Other Insurance Adjustments . Less favorable underwriting, primarily in our accident & health businessin Greece and our employee benefits business in the U.K., as well as unfavorable underwriting in the Gulf region and in our life insurance business in France,decreased adjusted earnings by $55 million. Our annual actuarial assumption review resulted in a decrease in adjusted earnings of $15 million when comparedto 2017. In addition, adjusted earnings decreased by $2 million due to refinements recorded in 2017 in our employee benefits business in the U.K. and the Gulfregion and, in 2018, in our life insurance business in the Gulf region.

Expenses. Adjusted earnings increased by $62 million due to lower costs associated with enterprise-wide initiatives, notably the closing of the wealthmanagement product to new business in the U.K. in the third quarter of 2017, declines in various other expenses and the release of provisions arising fromfinalization of historic corporate tax filings.

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Taxes and Other . A decrease in our invested asset base, primarily due to dividend payments, negatively impacted net investment income resulting in an$8 million decrease in adjusted earnings. In addition, adjusted earnings decreased by $5 million due to unfavorable revisions to tax assets in both 2018 and2017 and a reinsurance profit share in 2017 resulted in a $2 million decrease in adjusted earnings.

Year Ended December 31, 2017 Compared with the Year Ended December 31, 2016

Unless otherwise stated, all amounts discussed below are net of income tax.

Foreign Currency. Changes in foreign currency exchange rates reduced adjusted earnings by $12 million for 2017 as compared to 2016, primarily drivenby the strengthening of the U.S. dollar against the Egyptian pound and Turkish lira, partially offset by the weakening of the U.S. dollar against the Russianruble and the Euro. Unless otherwise stated, all amounts discussed below are net of foreign currency fluctuations. Foreign currency fluctuations can result insignificant variances in the financial statement line items.

Business Growth. Growth from our accident & health and credit life businesses in Turkey and our employee benefits business in the U.K., as well asgrowth across several European markets, partially offset by lower premium persistency in our employee benefits business in the Gulf, increased adjustedearnings by $25 million .

Underwriting, Actuarial Assumption Review and Other Insurance Adjustments. Underwriting experience was essentially unchanged as unfavorableunderwriting, primarily in our credit life business in Turkey and across several European markets, was offset by favorable underwriting in our accident &health business in Greece. The impact in both 2017 and 2016 of our annual actuarial assumption review resulted in an $8 million increase in net adjustedearnings. Refinements to certain insurance liabilities and other adjustments in both 2017 and 2016 resulted in a $4 million decrease in adjusted earnings.

Expenses. Adjusted earnings increased by $5 million primarily due to expense discipline across the region, as well as enterprise-wide initiatives, notablythe closing of the wealth management product to new business in the U.K., partially offset by additional costs related to regulatory and compliancerequirements.

Taxes and Other. Our 2017 results include an unfavorable revision to the estimate of the valuation allowance required for a deferred tax asset in our non-life business of $5 million and an incremental tax expense in Russia of $2 million. This was offset by lower effective tax rates, which resulted in a $7 millionincrease to adjusted earnings. In addition, a 2017 reinsurance profit share of $2 million was offset by a 2016 benefit of $3 million following the cancellation ofa distribution agreement with one of our bancassurance partners.

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MetLifeHoldings

Business Overview. In connection with the Separation and the U.S. Retail Advisor Force Divestiture, we have discontinued the marketing of life and annuityproducts in this segment, which has led to lower revenues. This will result in a declining DAC asset over time and we anticipate an average decline in premiums,fees and other revenues of approximately 5% per year from expected business run-off. A significant portion of our adjusted earnings is driven by separateaccount balances. Most directly, these balances determine asset-based fee income but they also impact DAC amortization and asset-based commissions. Separateaccount balances are driven by sales, movements in the market, surrenders, withdrawals, benefit payments, transfers and policy charges. Separate accountbalances decreased primarily due to the impact of negative net flows, as benefits, surrenders and withdrawals exceeded sales, as well as equity marketperformance. Although we have discontinued selling our long-term care product, we continue to collect premiums and administer the existing block of business,which contributed to asset growth in the segment, and we expect the related reserves to grow as this block matures.

Years Ended December 31,

2018 2017 2016

(In millions)

Adjusted revenues Premiums $ 3,879 $ 4,144 $ 4,506Universal life and investment-type product policy fees 1,218 1,361 1,436Net investment income 5,379 5,607 5,944Other revenues 250 244 581

Total adjusted revenues 10,726 11,356 12,467Adjusted expenses Policyholder benefits and claims and policyholder dividends 6,833 7,000 7,523Interest credited to policyholder account balances 944 1,018 1,042Capitalization of DAC (36) (82) (281)Amortization of DAC and VOBA 332 302 736Interest expense on debt 9 24 57Other expenses 1,081 1,365 2,392

Total adjusted expenses 9,163 9,627 11,469Provision for income tax expense (benefit) 308 547 292

Adjusted earnings $ 1,255 $ 1,182 $ 706

Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017

Unless otherwise stated, all amounts discussed below are net of income tax.

U.S. Tax Reform . The changes from U.S. Tax Reform resulted in an increase in adjusted earnings of $ 213 million for 2018 compared to 2017.

Business Growth . Lower net investment income, resulting from a reduced invested asset base, primarily in fixed income securities, decreased adjustedearnings. The reduced invested asset base is primarily the result of negative net flows in our deferred annuities and life businesses. This decline was partiallyoffset by invested asset growth in our long-term care business. The negative net flows in our annuities business and a decrease in universal life depositsresulted in lower fee income and lower interest credited expenses. The continued maturing of the existing long-term care block of business resulted in higherinterest credited expenses. The combined impact of the items affecting our business growth, partially offset by lower DAC amortization, resulted in a $ 192million decrease in adjusted earnings.

Market Factors . Market factors, including interest rate levels, variability in equity market returns, and foreign currency exchange rate fluctuations,continued to impact our results; however, certain impacts were mitigated by derivatives used to hedge these risks. Higher DAC amortization from annuities,driven by lower equity market returns, resulted in a decrease in adjusted earnings. Investment yields were favorably impacted by a reduction in investmentexpenses in addition to higher returns on both real estate investments and FVO Securities. These improvements in investment yields were partially offset by adecline in mortgage loan yields and lower returns on private equities. The changes in market factors discussed above resulted in a $ 31 million decrease inadjusted earnings.

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Underwriting, Actuarial Assumption Review, and Other Insurance Adjustments . Unfavorable mortality in our life businesses, partially offset by favorableunderwriting, primarily due to the impact of favorable rate actions in our long-term care business, and mortality gains on life-contingent annuities, resulted in a$ 32 million decrease in adjusted earnings. Our annual actuarial assumption review resulted in a decrease of $ 56 million in adjusted earnings when comparedto 2017. Changes in operational assumptions, including updates to closed block projections, maintenance and other expenses, were less favorable in the currentperiod. Refinements to DAC and certain insurance-related liabilities that were recorded in both 2018 and 2017 resulted in a $ 23 million increase in adjustedearnings. This includes the following 2018 refinements: (i) a charge relating to an increase in our IBNR life reserves, reflecting enhancements to our processesrelated to potential claims; (ii) a favorable reserve adjustment relating to certain variable annuity guarantees assumed from a former joint venture in Japan; and(iii) two separate favorable reserve adjustments resulting from modeling improvements in our life business. This also includes the following 2017 refinements:(i) a favorable DAC adjustment related to certain assumed participating whole life business; (ii) two separate favorable reserve adjustments resulting frommodeling improvements in our life business; (iii) an unfavorable adjustment related to the recapture and novation of, as well as adjustments to, assumed andceded agreements covering certain variable annuity business; (iv) an unfavorable net impact from a life reinsurance recapture; and (v) an unfavorable reserveadjustment resulting from modeling improvements in our long-term care business.

Expenses . Adjusted earnings increased by $ 145 million as a result of lower expenses, primarily due to declines in Separation-related expenses, as well aslower employee-related costs, including expenses related to pension and postretirement benefits .

Year Ended December 31, 2017 Compared with the Year Ended December 31, 2016

Unless otherwise stated, all amounts discussed below are net of income tax.

Business Growth . Lower net investment income, resulting from a reduced invested asset base, decreased adjusted earnings. The reduced asset base isprimarily the result of the 2016 recapture of certain assumed single-premium deferred annuity reinsurance agreements with Brighthouse. This decline waspartially offset by net asset growth in our long-term care and life businesses. Consistent with this asset growth, interest credited on insurance liabilitiesincreased. In our deferred annuities business, negative net flows contributed to a decrease in average separate account balances, and consequently, asset-basedfee income. The discontinuance of a distribution agreement, resulting from the Separation, also contributed to the decline in variable annuity fee income. Inour life business, a decrease in universal life sales resulted in lower fee income, net of DAC amortization, decreasing adjusted earnings. The combined impactof the items discussed above resulted in a $314 million decrease in adjusted earnings.

Market Factors. Market factors, including interest rate levels, variability in equity market returns, and foreign currency exchange rate fluctuations,continued to impact our results; however, certain impacts were mitigated by derivatives used to hedge these risks. Investment yields decreased primarily due todeclines in prepayment fees and derivative income, as well as lower returns on real estate joint ventures. These reductions in yields were partially offset byhigher returns on other limited partnership interests, driven by improvements in equity market performance. In our deferred annuity business, higher equityreturns drove an increase in average separate account balances which resulted in higher asset-based fee income. Adjusted earnings increased due to declines inDAC amortization. The changes in market factors discussed above resulted in an $8 million increase in adjusted earnings.

Underwriting, Actuarial Assumption Review and Other Insurance Adjustments. Unfavorable claims experience in our long-term care business, partiallyoffset by favorable mortality in our life business, resulted in a $20 million decrease in adjusted earnings. The impact in both 2017 and 2016 of our annualactuarial assumption review resulted in an increase of $156 million in adjusted earnings and was primarily related to favorable DAC unlockings in 2017compared to unfavorable DAC unlockings in 2016, primarily in our life business. Refinements to DAC and certain insurance-related liabilities that wererecorded in 2017 and 2016 resulted in a $196 million increase in adjusted earnings. This includes favorable 2017 refinements of (i) a $36 million DACadjustment related to certain participating whole life business assumed from Brighthouse; and (ii) a $55 million reserve adjustment resulting from modelingimprovements in our life business reserving process. This also includes a 2017 net unfavorable impact from a life reinsurance recapture and an unfavorable2016 adjustment of $30 million resulting from modeling improvements in the reserving process in our universal life business.

Expenses. Adjusted earnings increased by $181 million as a result of lower expenses, primarily due to lower costs as a result of the U.S. Retail AdvisorForce Divestiture, partially offset by Separation-related expenses.

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Other. Adjusted earnings increased by $267 million as a result of the Separation and continued annuities reinsurance activity with Brighthouse. Thisfavorable impact was primarily due to the recapture in 2016 of certain assumed single-premium deferred annuity reinsurance agreements, and the eliminationof interest credited payments on the related reinsurance payable, as well as lower DAC amortization. This increase was partially offset by the net unfavorableimpact in 2017 from the recapture and novation of, as well as refinements to, assumed and ceded agreements covering certain variable annuity business.Favorable results from our reinsurance agreement with our former operating joint venture in Japan due to higher fund returns resulted in a $13 million increasein adjusted earnings.

Corporate&Other

Years Ended December 31,

2018 2017 2016

(In millions)

Adjusted revenues Premiums $ 118 $ 54 $ 40Universal life and investment-type product policy fees — 1 2Net investment income 178 28 178Other revenues 333 271 110

Total adjusted revenues 629 354 330Adjusted expenses Policyholder benefits and claims and policyholder dividends 80 26 41Interest credited to policyholder account balances — 1 6Capitalization of DAC (8) (8) (7)Amortization of DAC and VOBA 6 6 8Interest expense on debt 1,032 1,105 1,139Other expenses 907 894 597

Total adjusted expenses 2,017 2,024 1,784Provision for income tax expense (benefit) (825) (688) (948)

Adjusted earnings (563) (982) (506)Less: Preferred stock dividends 141 103 103

Adjusted earnings available to common shareholders $ (704) $ (1,085) $ (609)

The table below presents adjusted earnings available to common shareholders by source:

Years Ended December 31,

2018 2017 2016

(In millions)

Other business activities $ 41 $ 28 $ (8)Other net investment income 263 221 338Interest expense on debt (1,076) (1,198) (1,252)Corporate initiatives and projects (405) (275) (198)Other (368) (384) (332)Provision for income tax (expense) benefit and other tax-related items 982 626 946Preferred stock dividends (141) (103) (103)

Adjusted earnings available to common shareholders $ (704) $ (1,085) $ (609)

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Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017

Unless otherwise stated, all amounts discussed below are net of income tax.

U.S. Tax Reform . The changes from U.S. Tax Reform resulted in a decrease in adjusted earnings of $139 million for 2018 compared to 2017. Our 2018results included a decrease in adjusted earnings of $315 million, primarily related to the lower tax rate along with a slight reduction in net investment income.Our 2017 results included a tax charge of $254 million to reflect the enactment of U.S. Tax Reform. Our 2018 results also include an additional tax charge of$78 million to reflect a revision to the estimate of this enactment .

Other Net Investment Income. Higher yields on fixed income securities, as well as higher returns on private equities and real estate investments, werepartially offset by lower returns on the remainder of the portfolio, resulting in an increase of $33 million in other net investment income.

Interest Expense on Debt . Interest expense on debt decreased by $96 million, primarily due to: (i) the exchange of senior notes for FVO BrighthouseCommon Stock; (ii) the redemption of senior notes for cash; (iii) the maturity of senior notes during 2018; (iv) lower interest rates on certain intercompanysenior notes redenominated to Japanese yen; and (v) the maturity of $1.0 billion of senior notes in December 2017. These redenominated intercompany seniornotes, which eliminate in consolidation, are held by our business segments.

Corporate Initiatives and Projects . Expenses associated with corporate initiatives and projects increased by $103 million, primarily due to higher costsassociated with the continued investment in our unit cost initiative, partially offset by 2017 lease impairments and lower costs associated with certain otherenterprise-wide initiatives.

Other . Adjusted earnings increased $13 million, primarily as a result of a $45 million decrease in expenses for interest on certain tax positions and $18million of expenses incurred in 2017 and taxed at the 2017 rate related to the guaranty fund assessment for Penn Treaty. These favorable items are partiallyoffset by a $39 million increase in certain corporate-related expenses and a $20 million increase in litigation accruals.

Provision for Income Tax (Expense) Benefit and Other Tax-Related Items . In addition to the impact of U.S. Tax Reform, Corporate & Other’s effectivetax rate differs from the U.S. statutory rate of 21% typically due to benefits from the impact of certain permanent tax-preferenced items, including non-taxableinvestment income, tax credits for investments in low income housing and foreign earnings taxed at different rates than the U.S. statutory rate. In 2018, theCompany recognized net tax-related benefits of $364 million related to the settlement of tax audits. Of this amount, $349 million related to the tax treatment ofa wholly-owned U.K. investment subsidiary of MLIC which was comprised of a $168 million tax benefit and a $181 million interest benefit. Our 2018 resultsalso included a $36 million tax benefit related to a non-cash transfer of assets from a wholly-owned U.K. investment subsidiary to MLIC, as well as a $32million tax charge for decreased utilization of tax-preferenced items. In 2017, the Company recognized a $180 million net tax charge related to the repatriationof approximately $3.0 billion of cash following the post-Separation review of our capital needs, partially offset by a tax benefit associated with dividends fromour non-U.S. operations. Our 2017 results also included a $41 million net tax-related benefit from the finalization of certain tax audits.

Preferred Stock Dividends . Preferred stock dividends increased $38 million as a result of the issuance of Series D and Series E preferred stock in 2018.

Year Ended December 31, 2017 Compared with the Year Ended December 31, 2016

Unless otherwise stated, all amounts discussed below are net of income tax.

Other Business Activities . Adjusted earnings from other business activities increased $23 million. This was primarily due to growth and improved resultsfrom our start-up operations predominantly from our investment management business.

Other Net Investment Income . Other net investment income decreased by $76 million primarily driven by a lower invested asset base and lower returnson alternative investments (excluding the impact of U.S. Tax Reform) and real estate joint ventures. These decreases were partially offset by a decrease in theamount credited to the segments due to both a reduction in the crediting rate and the amount of economic capital managed by Corporate & Other on theirbehalf.

Interest Expense on Debt . Interest expense on debt decreased by $35 million , mainly due to the maturity of $1.3 billion of our senior notes in June 2016.

Corporate Initiatives and Projects . Expenses associated with corporate initiatives and projects increased by $50 million, primarily due to higher costsassociated with enterprise-wide initiatives, primarily related to lease impairments and costs related to our unit cost initiative.

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Other . Adjusted earnings decreased from 2016 as a result of a $32 million increase in asbestos and litigation reserves, a $25 million increase inemployee-related expenses, $18 million of expenses incurred in 2017 related to the guaranty fund assessment for Penn Treaty, and a $13 million increase inexpenses for interest on uncertain tax positions. These decreases in adjusted earnings were partially offset by a $31 million decrease in certain corporateexpenses and $26 million of favorable net adjustments to certain reinsurance assets and liabilities in both 2017 and 2016.

Incremental Tax Benefit and Other Tax-Related Items . Corporate & Other benefits from the impact of certain permanent tax preferenced items, includingnon-taxable investment income and tax credits for investments in low income housing. As a result, our effective tax rate differs from the U.S. statutory rate of35%. In 2017, we had a $180 million net tax charge related to the repatriation of approximately $3.0 billion of cash following the post-Separation review ofour capital needs, partially offset by a tax benefit associated with dividends from our non-U.S. operations and a $41 million tax benefit from the finalization ofcertain tax audits. Results for 2016 include a $46 million tax benefit related to the finalization of certain tax audits. In addition, higher utilization of taxpreferenced items increased adjusted earnings by $106 million over 2016.

U.S. Tax Reform resulted in a $298 million charge in 2017, which includes a $44 million reduction in net investment income and a $254 million taxcharge.

Effects of Inflation

Management believes that inflation has not had a material effect on the Company’s consolidated results of operations, except insofar as inflation may affectinterest rates.

An increase in inflation could affect our business in several ways. During inflationary periods, the value of fixed income investments falls which couldincrease realized and unrealized losses. Inflation also increases expenses for labor and other materials, potentially putting pressure on profitability if such costscannot be passed through in our product prices. Inflation could also lead to increased costs for losses and loss adjustment expenses in certain of our businesses,which could require us to adjust our pricing to reflect our expectations for future inflation. Prolonged and elevated inflation could adversely affect the financialmarkets and the economy generally, and dispelling it may require governments to pursue a restrictive fiscal and monetary policy, which could constrain overalleconomic activity, inhibit revenue growth and reduce the number of attractive investment opportunities.

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Investments

InvestmentRisks

Our primary investment objective is to optimize, net of income tax, risk-adjusted investment income and risk-adjusted total return while ensuring that assetsand liabilities are managed on a cash flow and duration basis. The Investments Department, led by the Chief Investment Officer, manages investment risks using arisk control framework comprised of policies, procedures and limits, as discussed further below. The Investments Risk Committee, chaired by GRM, reviews andmonitors investment risk limits and tolerances. We are exposed to the following primary sources of investment risks:

• credit risk, relating to the uncertainty associated with the continued ability of a given obligor to make timely payments of principal and interest;

• interest rate risk, relating to the market price and cash flow variability associated with changes in market interest rates. Changes in market interest rateswill impact the net unrealized gain or loss position of our fixed income investment portfolio and the rates of return we receive on both new funds investedand reinvestment of existing funds;

• liquidity risk, relating to the diminished ability to sell certain investments, in times of strained market conditions;

• market valuation risk, relating to the variability in the estimated fair value of investments associated with changes in market factors such as credit spreadsand equity market levels. A widening of credit spreads will adversely impact the net unrealized gain (loss) position of the fixed income investmentportfolio, will increase losses associated with credit-based non-qualifying derivatives where we assume credit exposure, and, if credit spreads widensignificantly or for an extended period of time, will likely result in higher OTTI. Credit spread tightening will reduce net investment income associatedwith purchases of fixed maturity securities AFS and will favorably impact the net unrealized gain (loss) position of the fixed income investment portfolio;

• currency risk, relating to the variability in currency exchange rates for foreign denominated investments including with respect to the U.K.’s plannedwithdrawal from the EU. This risk relates to potential decreases in estimated fair value and net investment income resulting from changes in currencyexchange rates versus the U.S. dollar. In general, the weakening of foreign currencies versus the U.S. dollar will adversely affect the estimated fair valueof our foreign denominated investments; and

• real estate risk, relating to commercial, agricultural and residential real estate, and stemming from factors, which include, but are not limited to, marketconditions, including the supply and demand of leasable commercial space, creditworthiness of borrowers and their tenants and joint venture partners,capital markets volatility, changes in market interest rates, commodity prices, farm incomes and U.S. housing market conditions.

We manage investment risk through in-house fundamental credit analysis of the underlying obligors, issuers, transaction structures and real estate properties.We also manage credit, market and liquidity risk through industry and issuer diversification and asset allocation. These risk limits, approved annually by acommittee of directors that oversees our investment portfolio, promote diversification by asset sector, avoid concentrations in any single issuer and limit overallaggregate credit and equity risk exposure, as measured by our economic capital framework. For real estate assets, we manage credit and market risk through assetallocation and by diversifying by geography, property and product type. We manage interest rate risk as part of our ALM strategies. These strategies includemaintaining an investment portfolio with diversified maturities that has a weighted average duration that reflects the duration of our estimated liability cash flowprofile, and utilizing product design, such as the use of market value adjustment features and surrender charges, to manage interest rate risk. We also manageinterest rate risk through proactive monitoring and management of certain NGEs of our products, such as the resetting of credited interest and dividend rates forpolicies that permit such adjustments. In addition to hedging with foreign currency derivatives, we manage currency risk by matching much of our foreign currencyliabilities in our foreign subsidiaries with their respective foreign currency assets, thereby reducing our risk to foreign currency exchange rate fluctuation. We alsouse certain derivatives in the management of credit, interest rate, and market valuation risk.

We enter into market standard purchased and written credit default swap contracts. Payout under such contracts is triggered by certain credit eventsexperienced by the referenced entities. For credit default swaps covering North American corporate issuers, credit events typically include bankruptcy and failureto pay on borrowed money. For European corporate issuers, credit events typically also include involuntary restructuring. With respect to credit default contractson sovereign debt, credit events typically include failure to pay debt obligations, repudiation, moratorium, or involuntary restructuring. In each case, payout on acredit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association determines thata credit event has occurred.

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We use purchased credit default swaps to mitigate credit risk in our investment portfolio. Generally, we purchase credit protection by entering into creditdefault swaps referencing the issuers of specific assets we own. In certain cases, basis risk exists between these credit default swaps and the specific assets we own.For example, we may purchase credit protection on a macro basis to reduce exposure to specific industries or other portfolio concentrations. In such instances, thereferenced entities and obligations under the credit default swaps may not be identical to the individual obligors or securities in our investment portfolio. Inaddition, our purchased credit default swaps may have shorter tenors than the underlying investments they are hedging, which gives us more flexibility in managingour credit exposures. We believe that our purchased credit default swaps serve as effective economic hedges of our credit exposure.

CurrentEnvironment

As a global insurance company, we continue to be impacted by the changing global financial and economic environment, as well as the monetary policy ofcentral banks around the world. See “— Industry Trends — Financial and Economic Environment.” Measures taken by central banks, including with respect to thelevel of interest rates, may have an impact on the pricing levels of risk-bearing investments and may adversely impact our business operations, investment portfolioand derivatives. The current environment continues to impact our net investment income, net investment gains (losses), net derivative gains (losses), level ofunrealized gains (losses) within the various asset classes in our investment portfolio, and our level of investment in lower yielding cash equivalents, short-terminvestments and government securities. See “Risk Factors — Economic Environment and Capital Markets Risks — Difficult Economic Conditions May AdverselyAffect Our Business, Results of Operations and Financial Condition.”

EuropeanInvestments

We maintain general account investments in Europe to support our insurance operations and related policyholder liabilities in these countries and certain ofour non-European operations invest in Europe for diversification. In Europe, we have proactively mitigated risk in both direct and indirect exposures byinvesting in a diversified portfolio of high quality investments with a focus on the higher-rated countries, including the U.K., France, Germany, the Netherlands,Poland, Switzerland and Belgium. The sovereign and agency debt of these countries continues to maintain investment grade credit ratings from all major ratingagencies. European sovereign and agency fixed maturity securities AFS, at estimated fair value, were $8.4 billion at December 31, 2018 . Our Europeancorporate securities (fixed maturity and perpetual hybrid securities classified as non-redeemable preferred stock) are invested in a diversified portfolio ofprimarily non-financial services securities, which comprised $21.3 billion , or 68% , of European corporate securities, at estimated fair value, at December 31,2018 . Of these European fixed maturity securities AFS, 96% were investment grade and, for the 4% that were below investment grade, the majority were non-financial services corporate securities at December 31, 2018 . European financial services corporate securities, at estimated fair value, were $10.0 billion(including $6.3 billion within the banking sector) with 99% investment grade, at December 31, 2018 . Total European fixed maturity securities AFS, at estimatedfair value, were $40.0 billion at December 31, 2018 , including $348 million of Structured Securities (see “ — Fixed Maturity Securities AFS and EquitySecurities”).

SelectedCountryandSectorInvestments

We have country specific exposure to volatility, as we maintain general account investments in the selected countries as summarized below to support ourinsurance operations and related policyholder liabilities in these countries and we also have exposure through our global portfolio diversification. In addition, wehave sector specific exposure to volatility, including the impact of lower oil prices and variability in oil prices, on the energy sector.

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Selected Country: The following table presents a summary of fixed maturity securities AFS in these countries. The information below is presented on acountry of risk basis (e.g. the country where the issuer primarily conducts business). Sovereign includes government and agency.

Selected Country Fixed Maturity Securities AFS at December 31, 2018

Sovereign Financial Services

Non-Financial Services Structured Total (1)

(Dollars in millions)United Kingdom $ 25 $ 3,973 $ 9,840 $ 291 $ 14,129Argentina 349 24 20 — 393Turkey 189 5 77 — 271

Total $ 563 $ 4,002 $ 9,937 $ 291 $ 14,793Investment grade % 4% 99% 94% 85% 91%

__________________

(1) The par value and amortized cost of these selected country fixed maturity securities AFS were $14.4 billion and $15.4 billion , respectively, at December 31,2018 .

Selected Sector: Our exposure to energy sector fixed maturity securities AFS was $8.5 billion (comprised of fixed maturity securities AFS of $8.5 billion atestimated fair value and related net written credit default swaps of $55 million at notional value), of which 86% were investment grade, with unrealized losses of$15 million at December 31, 2018 . We maintain a diversified energy sector fixed maturities securities portfolio across sub-sectors and issuers. This portfoliocomprised less than 2% of total investments at December 31, 2018 .

We manage direct and indirect investment exposure in the selected countries and the energy sector through fundamental credit analysis and we continuallymonitor and adjust our level of investment exposure. We do not expect that our general account investments in these countries or the energy sector will have amaterial adverse effect on our results of operations or financial condition.

InvestmentPortfolioResults

The reconciliation of net investment income under GAAP to net investment income, as reported on an adjusted earnings basis, is presented below.

For the Years Ended December 31,

2018 2017 2016

(In millions)Net investment income — GAAP basis $ 16,166 $ 17,363 $ 16,790

Investment hedge adjustments 475 435 580Unit-linked contract income 683 (1,300) (950)Other 59 46 17

Net investment income, as reported on an adjusted basis (1) $ 17,383 $ 16,544 $ 16,437__________________

(1) See “— Non-GAAP and Other Financial Disclosures — Adjusted earnings and related measures — Adjusted revenues and adjusted expenses — Netinvestment income” for a discussion of the adjustments made to net investment income under GAAP in calculating net investment income, as reported on anadjusted basis.

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The following yield table presents our investment portfolio results for the periods indicated. We calculate yields on our investment portfolio using the non-GAAP performance metric of net investment income, as reported on an adjusted basis. Net investment income, as reported on an adjusted basis, includes theimpact of changes in foreign currency exchange rates. This yield table presentation is consistent with how we measure our investment performance formanagement purposes, and we believe it enhances understanding of our investment portfolio results.

For the Years Ended December 31,

2018 2017 2016

Yield% (1) Amount Yield% (1) Amount Yield% (1) Amount

(Dollars in millions)

Fixed maturity securities AFS (2) (3) 4.26 % $ 11,678 4.29 % $ 11,401 4.38 % $ 11,665Mortgage loans (3) 4.66 % 3,340 4.58 % 3,081 4.61 % 2,858Real estate and real estate joint ventures 3.59 % 352 3.18 % 297 3.73 % 322Policy loans 5.21 % 506 5.39 % 517 5.29 % 511Equity securities 4.79 % 64 5.15 % 129 4.82 % 120Other limited partnership interests 12.97 % 792 14.93 % 797 9.23 % 478Cash and short-term investments 2.41 % 244 1.48 % 132 1.17 % 111Other invested assets 887 655 856Investment income 4.56 % 17,863 4.53 % 17,009 4.58 % 16,921Investment fees and expenses (0.12) (479) (0.14) (511) (0.14) (507)Net investment income including divested businesses and lag

elimination (4) 4.44 % 17,384 4.39 % 16,498 4.44 % 16,414Less: net investment income from divested businesses and lag

elimination (4) 1 (46) (23)Net investment income, as reported on an adjusted basis $ 17,383 $ 16,544 $ 16,437__________________

(1) Yields are calculated as investment income as a percent of average quarterly asset carrying values. Investment income excludes recognized gains and losses.Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, annuities funding structuredsettlement claims, freestanding derivative assets, collateral received from derivative counterparties, the effects of consolidating certain variable interestentities (“VIEs”) under GAAP that are treated as consolidated securitization entities (“CSEs”), Unit-linked investments and FVO Brighthouse CommonStock . A yield is not presented for other invested assets as it is not considered a meaningful measure of performance for this asset class.

(2) Investment income from fixed maturity securities AFS includes amounts from FVO Securities of $51 million , $68 million and $37 million for the yearsended December 31, 2018 , 2017 and 2016 , respectively.

(3) Investment income from fixed maturity securities AFS and mortgage loans includes prepayment fees.

(4) See “ — Non-GAAP and Other Financial Disclosures” for discussion of divested businesses and lag elimination.

See “— Results of Operations — Consolidated Results — Adjusted Earnings” for an analysis of the period over period changes in investment portfolioresults.

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FixedMaturitySecuritiesAFSandEquitySecurities

The following table presents fixed maturity securities AFS and equity securities by type (public or private) and information about perpetual and redeemablesecurities held at:

December 31, 2018 December 31, 2017

Estimated Fair

Value % ofTotal

Estimated FairValue

% ofTotal

(Dollars in millions) Fixed maturity securities AFS Publicly-traded $ 249,595 83.7 % $ 262,078 84.8 %

Privately-placed 48,670 16.3 46,853 15.2 Total fixed maturity securities AFS $ 298,265 100.0 % $ 308,931 100.0 %

Percentage of cash and invested assets 66.0% 67.6% Equity securities Publicly-traded $ 1,282 89.0 % $ 1,490 59.3 %

Privately-held 158 11.0 1,023 40.7 Total equity securities $ 1,440 100.0 % $ 2,513 100.0 %

Percentage of cash and invested assets 0.3% 0.6% Perpetual and redeemable securities

Perpetual securities included within fixed maturity securities AFS and equity securities $ 367 $ 440 Redeemable preferred stock with a stated maturity included within fixed maturity securities

AFS $ 911 $ 884

Included within fixed maturity securities AFS are structured securities including residential mortgage-backed securities (“RMBS”), asset-backed securities(“ABS”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”).

Perpetual securities are included within fixed maturity securities AFS and equity securities. Upon acquisition, we classify perpetual securities that haveattributes of both debt and equity as fixed maturity securities AFS if the securities have an interest rate step-up feature which, when combined with other qualitativefactors, indicates that the securities have more debt-like characteristics; while those with more equity-like characteristics are classified as equity securities. Many ofsuch securities, commonly referred to as “perpetual hybrid securities,” have been issued by non-U.S. financial institutions that are accorded the highest two capitaltreatment categories by their respective regulatory bodies (i.e. core capital, or “Tier 1 capital” and perpetual deferrable securities, or “Upper Tier 2 capital”).

Redeemable preferred stock with a stated maturity is included within fixed maturity securities AFS. These securities, which are commonly referred to as“capital securities,” primarily have cumulative interest deferral features and are primarily issued by U.S. financial institutions.

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Valuation of Securities . We are responsible for the determination of the estimated fair value of our investments. We determine the estimated fair value ofpublicly-traded securities after considering one of three primary sources of information: quoted market prices in active markets, independent pricing services, orindependent broker quotations. We determine the estimated fair value of privately-placed securities after considering one of three primary sources of information:market standard internal matrix pricing, market standard internal discounted cash flow techniques, or independent pricing services (after we determine theindependent pricing services’ use of available observable market data). For publicly-traded securities, the number of quotations obtained varies by instrument anddepends on the liquidity of the particular instrument. Generally, we obtain prices from multiple pricing services to cover all asset classes and obtain multiple pricesfor certain securities, but ultimately utilize the price with the highest placement in the fair value hierarchy. Independent pricing services that value theseinstruments use market standard valuation methodologies based on data about market transactions and inputs from multiple pricing sources that are marketobservable or can be derived principally from or corroborated by observable market data. See Note 10 of the Notes to the Consolidated Financial Statements for adiscussion of the types of market standard valuation methodologies utilized and key assumptions and observable inputs used in applying these standard valuationmethodologies. When a price is not available in the active market or through an independent pricing service, management values the security primarily usingmarket standard internal matrix pricing or discounted cash flow techniques, and non-binding quotations from independent brokers who are knowledgeable aboutthese securities. Independent non-binding broker quotations utilize inputs that may be difficult to corroborate with observable market data. As shown in thefollowing section, less than 1% of our fixed maturity securities AFS were valued using non-binding quotations from independent brokers at December 31, 2018 .

Senior management, independent of the trading and investing functions, is responsible for the oversight of control systems and valuation policies for securities,mortgage loans and derivatives. On a quarterly basis, new transaction types and markets are reviewed and approved to ensure that observable market prices andmarket-based parameters are used for valuation, wherever possible, and for determining that valuation adjustments, when applied, are based upon establishedpolicies and are applied consistently over time. Senior management oversees the selection of independent third-party pricing providers and the controls andprocedures to evaluate third-party pricing.

We review our valuation methodologies on an ongoing basis and revise those methodologies when necessary based on changing market conditions. Assuranceis gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accountingstandards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include,but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair valueestimates, comparing fair value estimates to management’s knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing pricesfrom multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The processincludes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whetherthese inputs can be corroborated by observable market data. We ensure that prices received from independent brokers, also referred to herein as “consensuspricing,” are representative of estimated fair value by considering such pricing relative to our knowledge of the current market dynamics and current pricing forsimilar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio.

We also apply a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fairvalue. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independentnon-binding broker quotations are obtained, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value,compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of theportfolio; accordingly, overrides were not material. This is, in part, because internal estimates are generally based on available market evidence and estimates usedby other market participants. In the absence of such market-based evidence, management’s best estimate is used.

We have reviewed the significance and observability of inputs used in the valuation methodologies to determine the appropriate fair value hierarchy level foreach of our securities. Based on the results of this review and investment class analysis, each instrument is categorized as Level 1, 2 or 3 based on the lowest levelsignificant input to its valuation. See Note 10 of the Notes to the Consolidated Financial Statements for information regarding the valuation techniques and inputsby level within the three-level fair value hierarchy by major classes of invested assets.

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FairValueofFixedMaturitySecuritiesAFSandEquitySecurities

Fixed maturity securities AFS and equity securities measured at estimated fair value on a recurring basis and their corresponding fair value pricing sourcesare as follows:

December 31, 2018

Fixed MaturitySecurities AFS

EquitySecurities

(Dollars in millions)Level 1

Quoted prices in active markets for identical assets $ 19,656 6.6% $ 916 63.6%Level 2

Independent pricing sources 261,605 87.7 70 4.9Internal matrix pricing or discounted cash flow techniques 2,133 0.7 35 2.4

Significant other observable inputs 263,738 88.4 105 7.3Level 3

Independent pricing sources 10,506 3.6 307 21.3Internal matrix pricing or discounted cash flow techniques 3,976 1.3 107 7.4Independent broker quotations 389 0.1 5 0.4

Significant unobservable inputs 14,871 5.0 419 29.1Total estimated fair value $ 298,265 100.0% $ 1,440 100.0%

See Note 10 of the Notes to the Consolidated Financial Statements for the fixed maturity securities AFS and equity securities fair value hierarchy.

The majority of the Level 3 fixed maturity securities AFS and equity securities were concentrated in three sectors: U.S. and foreign corporate securities andRMBS at December 31, 2018. During the year ended December 31, 2018 , Level 3 fixed maturity securities AFS decreased by $1.4 billion , or 9% . The decreasewas driven by transfers out of Level 3 in excess of transfers into Level 3 and a decrease in estimated fair value recognized in OCI, partially offset by purchases inexcess of sales .

See “ — Fixed Maturity Securities AFS and Equity Securities — Valuation of Securities” for further information regarding the composition of fair valuepricing sources for securities. See Note 10 of the Notes to the Consolidated Financial Statements for a rollforward of the fair value measurements for securitiesmeasured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs; transfers into and/or out of Level 3; and further informationabout the valuation approaches and inputs by level by major classes of invested assets that affect the amounts reported above.

FixedMaturitySecuritiesAFS

See Notes 1 and 8 of the Notes to the Consolidated Financial Statements for information about fixed maturity securities AFS by sector, contractualmaturities and continuous gross unrealized losses.

FixedMaturitySecuritiesAFSCreditQuality—Ratings

The Securities Valuation Office of the NAIC evaluates the fixed maturity security investments of insurers for regulatory reporting and capital assessmentpurposes and assigns securities to one of six credit quality categories called “NAIC designations.” If no designation is available from the NAIC, then, aspermitted by the NAIC, an internally developed designation is used. The NAIC designations are generally similar to the credit quality ratings of the NRSRO forfixed maturity securities AFS, except for certain Structured Securities as described below. Rating agency ratings are based on availability of applicable ratingsfrom rating agencies on the NAIC credit rating provider list, including Moody’s, S&P, Fitch, Dominion Bond Rating Service, A.M. Best, Kroll Bond RatingAgency, Egan Jones Ratings Company and Morningstar Credit Ratings, LLC (“Morningstar”). If no rating is available from a rating agency, then an internallydeveloped rating is used.

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The NAIC has adopted revised methodologies for certain Structured Securities comprised of non-agency RMBS, CMBS and ABS. The NAIC’s objectivewith the revised methodologies for these Structured Securities was to increase the accuracy in assessing expected losses, and to use the improved assessment todetermine a more appropriate capital requirement for such Structured Securities. The revised methodologies reduce regulatory reliance on rating agencies andallow for greater regulatory input into the assumptions used to estimate expected losses from Structured Securities. We apply the revised NAIC methodologies toStructured Securities held by MetLife, Inc.’s insurance subsidiaries that maintain the NAIC statutory basis of accounting. The NAIC’s present methodology is toevaluate Structured Securities held by insurers using the revised NAIC methodologies on an annual basis. If MetLife, Inc.’s insurance subsidiaries acquireStructured Securities that have not been previously evaluated by the NAIC, but are expected to be evaluated by the NAIC in the upcoming annual review, aninternally developed designation is used until a NAIC designation becomes available. NAIC designations may not correspond to NRSRO ratings.

The following table presents total fixed maturity securities AFS by NRSRO rating and the applicable NAIC designation from the NAIC publishedcomparison of NRSRO ratings to NAIC designations, except for certain Structured Securities, which are presented using the revised NAIC methodologies asdescribed above, as well as the percentage, based on estimated fair value that each NAIC designation is comprised of at:

December 31,

2018 2017

NAICDesignation NRSRO Rating Amortized

Cost UnrealizedGain (Loss)

EstimatedFair

Value % ofTotal Amortized

Cost UnrealizedGain (Loss)

EstimatedFair

Value % ofTotal

(Dollars in millions) 1 Aaa/Aa/A $ 197,604 $ 11,202 $ 208,806 70.0 % $ 201,806 $ 17,024 $ 218,830 70.8 %2 Baa 72,482 659 73,141 24.5 67,270 5,126 72,396 23.4

Subtotal investment grade 270,086 11,861 281,947 94.5 269,076 22,150 291,226 94.2 3 Ba 11,249 (91) 11,158 3.7 11,155 556 11,711 3.8 4 B 4,745 (247) 4,498 1.6 5,004 151 5,155 1.7 5 Caa and lower 720 (73) 647 0.2 824 9 833 0.3 6 In or near default 16 (1) 15 — 10 (4) 6 —

Subtotal below investment

grade 16,730 (412) 16,318 5.5 16,993 712 17,705 5.8

Total fixed maturity

securities AFS $ 286,816 $ 11,449 $ 298,265 100.0 % $ 286,069 $ 22,862 $ 308,931 100.0 %

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The following tables present total fixed maturity securities AFS, based on estimated fair value, by sector classification and by NRSRO rating and theapplicable NAIC designations from the NAIC published comparison of NRSRO ratings to NAIC designations, except for certain Structured Securities, which arepresented using the revised NAIC methodologies as described above:

Fixed Maturity Securities AFS — by Sector & Credit Quality Rating

NAIC Designation: 1 2 3 4 5 6 TotalEstimatedFair ValueNRSRO Rating: Aaa/Aa/A Baa Ba B

Caa andLower

In or NearDefault

(Dollars in millions)December 31, 2018 U.S. corporate $ 34,363 $ 35,081 $ 5,850 $ 3,102 $ 544 $ 8 $ 78,948Foreign government 54,149 5,140 2,389 604 5 1 62,288Foreign corporate 22,602 30,849 2,534 669 49 — 56,703U.S. government and agency 38,915 407 — — — — 39,322RMBS 27,370 350 138 94 3 6 27,961ABS 11,467 772 204 26 3 — 12,472Municipals 11,056 439 38 — — — 11,533CMBS 8,884 103 5 3 43 — 9,038

Total fixed maturity securities AFS $ 208,806 $ 73,141 $ 11,158 $ 4,498 $ 647 $ 15 $ 298,265

Percentage of total 70.0% 24.5% 3.7% 1.6% 0.2% —% 100.0%December 31, 2017 U.S. corporate $ 37,305 $ 35,096 $ 6,153 $ 3,387 $ 717 $ 3 $ 82,661Foreign government 53,027 5,135 2,376 947 49 — 61,534Foreign corporate 21,925 30,214 2,616 759 55 — 55,569U.S. government and agency 47,067 327 — — — — 47,394RMBS 28,209 297 224 61 9 — 28,800ABS 11,311 760 215 1 3 1 12,291Municipals 11,921 454 78 — — 2 12,455CMBS 8,065 113 49 — — — 8,227

Total fixed maturity securities AFS $ 218,830 $ 72,396 $ 11,711 $ 5,155 $ 833 $ 6 $ 308,931

Percentage of total 70.8% 23.4% 3.8% 1.7% 0.3% —% 100.0%

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U.S.andForeignCorporateFixedMaturitySecuritiesAFS

We maintain a diversified portfolio of corporate fixed maturity securities AFS across industries and issuers. This portfolio does not have any exposure toany single issuer in excess of 1% of total investments and the top 10 holdings comprised 1% of total investments at both December 31, 2018 and 2017 . Thetables below present our U.S. and foreign corporate securities holdings by industry at:

December 31,

2018 2017

EstimatedFair

Value % ofTotal

EstimatedFair

Value % ofTotal

(Dollars in millions)Industrial $ 40,556 29.9% $ 42,273 30.6%

Finance 30,546 22.5 29,884 21.6

Consumer 30,140 22.2 31,419 22.7

Utility 22,206 16.4 21,773 15.8

Communications 10,406 7.7 11,072 8.0

Other 1,797 1.3 1,809 1.3

Total $ 135,651 100.0% $ 138,230 100.0%

StructuredSecurities

We held $49.5 billion and $49.3 billion of Structured Securities, at estimated fair value, at December 31, 2018 and 2017 , respectively, as presented in theRMBS, ABS and CMBS sections below.

RMBS

Our RMBS holdings by security type, risk profile and ratings profile are as follows at:

December 31,

2018 2017

EstimatedFair

Value % ofTotal

NetUnrealized

Gains (Losses)

EstimatedFair

Value % ofTotal

NetUnrealized

Gains (Losses) (Dollars in millions)By security type:

Collateralized mortgage obligations $ 15,302 54.7% $ 726 $ 15,388 53.4% $ 913Pass-through securities 12,659 45.3 (174) 13,412 46.6 41

Total RMBS $ 27,961 100.0% $ 552 $ 28,800 100.0% $ 954

By risk profile: Agency $ 19,834 70.9% $ 5 $ 20,010 69.5% $ 274Prime 1,123 4.0 47 1,209 4.2 73Alt-A 3,361 12.0 277 4,182 14.5 372Sub-prime 3,643 13.1 223 3,399 11.8 235

Total RMBS $ 27,961 100.0% $ 552 $ 28,800 100.0% $ 954

Ratings profile: Rated Aaa/AAA $ 20,666 73.9% $ 20,465 71.1% Designated NAIC 1 $ 27,370 97.9% $ 28,209 97.9%

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Collateralized mortgage obligations are structured by dividing the cash flows of mortgage loans into separate pools or tranches of risk that create multipleclasses of bonds with varying maturities and priority of payments. Pass-through mortgage-backed securities are secured by a mortgage loan or collection ofmortgage loans. The monthly mortgage loan payments from homeowners pass from the originating bank through an intermediary, such as a governmentagency or investment bank, which collects the payments and, for a fee, remits or passes these payments through to the holders of the pass-through securities.

The majority of our RMBS holdings were rated Aaa/AAA by Moody’s, S&P or Fitch; and were designated NAIC 1 by the NAIC at December 31, 2018and 2017 . Agency RMBS were guaranteed or otherwise supported by Federal National Mortgage Association, Federal Home Loan Mortgage Corporation orGovernment National Mortgage Association. Non-agency RMBS include prime, alternative residential mortgage loans (“Alt-A”) and sub-prime RMBS. Primeresidential mortgage lending includes the origination of residential mortgage loans to the most creditworthy borrowers with high quality credit profiles. Alt-Ais a classification of mortgage loans where the risk profile of the borrower is between prime and sub-prime. Sub-prime mortgage lending is the origination ofresidential mortgage loans to borrowers with weak credit profiles.

Included within prime and Alt-A RMBS are re-securitization of real estate mortgage investment conduit (“Re-REMIC”) securities. Re-REMIC RMBSinvolve the pooling of previous issues of prime and Alt-A RMBS and restructuring the combined pools to create new senior and subordinated securities. Thecredit enhancement on the senior tranches is improved through the re-securitization.

Historically, we have managed our exposure to sub-prime RMBS holdings by focusing primarily on senior tranche securities, stress testing the portfoliowith severe loss assumptions and closely monitoring the performance of the portfolio. Our sub-prime RMBS portfolio consists predominantly of securities thatwere purchased after 2012 at significant discounts to par value and discounts to the expected principal recovery value of these securities. The vast majority ofthese securities are investment grade under the NAIC designations (e.g., NAIC 1 and NAIC 2). The estimated fair value of our sub-prime RMBS holdingspurchased since 2012 was $3.4 billion and $3.1 billion at December 31, 2018 and 2017 , respectively, with unrealized gains (losses) of $201 million and $200million at December 31, 2018 and 2017 , respectively.

ABS

Our ABS holdings are diversified both by collateral type and by issuer. The following table presents our ABS holdings by collateral type and ratingsprofile at:

December 31,

2018 2017

EstimatedFair

Value % ofTotal

NetUnrealized

Gains (Losses)

EstimatedFair

Value % ofTotal

NetUnrealized

Gains (Losses) (Dollars in millions)By collateral type:

Collateralized debt obligations $ 6,724 53.9% $ (112) $ 5,703 46.4% $ 45Student loans 1,256 10.1 13 1,266 10.3 (1)Foreign residential loans 1,066 8.5 11 965 7.9 20Automobile loans 895 7.2 1 1,193 9.7 —Credit card loans 668 5.3 — 1,686 13.7 1Consumer loans 580 4.7 4 605 4.9 6Other loans 1,283 10.3 3 873 7.1 7

Total $ 12,472 100.0% $ (80) $ 12,291 100.0% $ 78

Ratings profile: Rated Aaa/AAA $ 7,142 57.3% $ 7,108 57.8% Designated NAIC 1 $ 11,467 91.9% $ 11,311 92.0%

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CMBS

Our CMBS holdings are diversified by vintage year. The following tables present our CMBS holdings by NRSRO rating and vintage year at:

December 31, 2018

Aaa Aa A Baa Below

InvestmentGrade Total

Amortized

Cost Estimated

FairValue Amortized

Cost Estimated

FairValue Amortized

Cost Estimated

FairValue Amortized

Cost Estimated

FairValue Amortized

Cost Estimated

FairValue Amortized

Cost Estimated

FairValue

(Dollars in millions)

2003 - 2011$ 257 $ 271 $ 40 $ 40 $ — $ — $ — $ — $ — $ — $ 297 $ 311

2012231 237 226 224 229 227 7 6 — — 693 694

2013723 746 644 655 279 277 — — 59 43 1,705 1,721

2014381 379 488 485 128 127 — — — — 997 991

2015523 514 81 80 34 34 — — — — 638 628

2016345 339 84 80 46 46 — — — — 475 465

2017862 851 666 654 234 228 39 39 — — 1,801 1,772

20181,434 1,445 690 695 292 293 23 23 — — 2,439 2,456

Total $ 4,756 $ 4,782 $ 2,919 $ 2,913 $ 1,242 $ 1,232 $ 69 $ 68 $ 59 $ 43 $ 9,045 $ 9,038

Ratings Distribution 52.9% 32.2% 13.6% 0.8% 0.5% 100.0%

December 31, 2017

Aaa Aa A Baa Below

InvestmentGrade Total

Amortized

Cost Estimated

FairValue Amortized

Cost Estimated

FairValue Amortized

Cost Estimated

FairValue Amortized

Cost Estimated

FairValue Amortized

Cost Estimated

FairValue Amortized

Cost Estimated

FairValue

(Dollars in millions)

2003 - 2011$ 286 $ 308 $ 38 $ 40 $ 22 $ 23 $ 15 $ 15 $ — $ — $ 361 $ 386

2012289 302 257 263 230 237 7 7 — — 783 809

2013787 835 717 748 285 292 60 45 — — 1,849 1,920

2014537 552 513 522 129 130 — — — — 1,179 1,204

20151,122 1,140 191 196 117 120 — — — — 1,430 1,456

2016401 404 69 68 40 40 65 66 575 578

2017898 899 685 687 246 246 41 42 — — 1,870 1,874

Total $ 4,320 $ 4,440 $ 2,470 $ 2,524 $ 1,069 $ 1,088 $ 188 $ 175 $ — $ — $ 8,047 $ 8,227

Ratings Distribution 54.0% 30.7% 13.2% 2.1% —% 100.0%

The tables above reflect NRSRO ratings including Moody’s, S&P, Fitch and Morningstar. CMBS designated NAIC 1 were 98.3% and 98.0% of totalCMBS at December 31, 2018 and 2017 , respectively.

EvaluationofFixedMaturitySecuritiesAFSforOTTIandEvaluatingTemporarilyImpairedFixedMaturitySecuritiesAFS

See Note 8 of the Notes to the Consolidated Financial Statements for information about the evaluation of fixed maturity securities AFS for OTTI andevaluation of temporarily impaired fixed maturity securities AFS.

OTTILossesonFixedMaturitySecuritiesAFSRecognizedinEarnings

See Note 8 of the Notes to the Consolidated Financial Statements for information about OTTI losses and gross gains and gross losses on fixed maturitysecurities AFS sold.

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OverviewofOTTILossesonSecuritiesRecognizedinEarnings

Credit-related impairments of fixed maturity securities AFS were $40 million , $10 million and $97 million for the years ended December 31, 2018 , 2017and 2016 , respectively.

Explanations of changes in fixed maturity securities AFS and equity securities impairments are as follows:

Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017

Overall OTTI losses recognized in earnings on fixed maturity securities AFS were $40 million for the year ended December 31, 2018 , as compared to$10 million for the year ended December 31, 2017 . The most significant increase in OTTI losses was in U.S. and foreign corporate securities and foreigngovernment securities, which comprised $40 million for the year ended December 31, 2018 , as compared to $4 million for the year ended December 31, 2017. An increase of $36 million in OTTI losses was mainly concentrated in consumer and Argentine foreign government securities and was a result of issuerspecific factors and from weakening of the Argentine peso.

In 2018, we adopted new guidance under which equity securities are no longer evaluated for impairment, rather are measured at fair value through netincome. Accordingly, there were no equity securities impairments for the year ended December 31, 2018. See Note 1 of the Notes to the ConsolidatedFinancial Statements.

Year Ended December 31, 2017 Compared with the Year Ended December 31, 2016

Overall OTTI losses recognized in earnings on fixed maturity securities AFS were $10 million for the year ended December 31, 2017 , as compared to$107 million for the year ended December 31, 2016 . The most significant decrease in OTTI losses was in U.S. and foreign corporate securities, whichcomprised $4 million for the year ended December 31, 2017 , as compared to $87 million for the year ended December 31, 2016 . A decrease of $83 million inOTTI losses was concentrated in industrial securities and was the result of lower oil prices impacting the energy sector in 2016.

Overall OTTI losses recognized in earnings on equity securities were $25 million for the year ended December 31, 2017, as compared to $75 million forthe year ended December 31, 2016, a decrease of $50 million, reflecting the impact of lower oil prices impacting the energy sector in 2016.

FutureImpairments

Future OTTI on fixed maturity securities AFS will depend primarily on economic fundamentals, issuer performance (including changes in the present valueof future cash flows expected to be collected), and changes in credit ratings, collateral valuation and foreign currency exchange rates. If economic fundamentalsdeteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods. See Note 1 of the Notes to the ConsolidatedFinancial Statements for a description of new guidance to be adopted in 2020 regarding the measurement of credit losses on financial instruments.

Contractholder-DirectedEquitySecuritiesandFairValueOptionSecurities

The estimated fair value of these investments, which are primarily comprised of Unit-linked investments, was $12.6 billion and $16.7 billion , or 2.8% and3.7% of cash and invested assets, at December 31, 2018 and 2017 , respectively. See Notes 1 and 10 of the Notes to the Consolidated Financial Statements for adescription of this portfolio, its fair value hierarchy and a rollforward of the fair value measurements for these investments measured at estimated fair value on arecurring basis using significant unobservable (Level 3) inputs.

SecuritiesLendingandRepurchaseAgreements

We participate in a securities lending program whereby securities are loaned to third parties, primarily brokerage firms and commercial banks. In addition, weparticipate in short-term repurchase agreement transactions with unaffiliated financial institutions.

See “— Liquidity and Capital Resources — The Company — Liquidity and Capital Uses — Securities Lending,” “— Liquidity and Capital Resources — TheCompany — Liquidity and Capital Uses — Repurchase Agreements” and Notes 1 and 8 of the Notes to the Consolidated Financial Statements for informationregarding our securities lending program and our repurchase agreement transactions.

FHLBofBostonAdvanceAgreements

A subsidiary of the Company has entered into short-term advance agreements with the FHLB of Boston.

S ee Note 8 o f the Notes to the Consolidated Financial Statements for information regarding our FHLB of Boston advance agreement transactions.

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MortgageLoans

Our mortgage loans are principally collateralized by commercial, agricultural and residential properties. Mortgage loans and the related valuation allowancesare summarized as follows at:

December 31,

2018 2017

Recorded Investment

% of Total

Valuation Allowance

% of Recorded Investment

Recorded Investment

% of Total

Valuation Allowance

% of Recorded Investment

(Dollars in millions)Commercial $ 48,463 63.9% $ 238 0.5% $ 44,375 64.8% $ 214 0.5%

Agricultural 14,905 19.7 46 0.3% 13,014 19.0 41 0.3%

Residential 12,427 16.4 58 0.5% 11,136 16.2 59 0.5%

Total $ 75,795 100.0% $ 342 0.5% $ 68,525 100.0% $ 314 0.5%

The information presented in the tables herein exclude mortgage loans where we elected the FVO. Such amounts are presented in Note 8 of the Notes to theConsolidated Financial Statements. The carrying value of all mortgage loans, net of valuation allowance was 16.8% and 15.0% of cash and invested assets atDecember 31, 2018 and 2017 , respectively.

We diversify our mortgage loan portfolio by both geographic region and property type to reduce the risk of concentration. Of our commercial and agriculturalmortgage loan portfolios, 84% are collateralized by properties located in the United States, with the remaining 16% collateralized by properties located outside theUnited States, which includes 5% of properties located in the U.K., at December 31, 2018 . The carrying values of our commercial and agricultural mortgage loanslocated in California, New York and Texas were 19% , 11% and 7% , respectively, of total commercial and agricultural mortgage loans at December 31, 2018 .Additionally, we manage risk when originating commercial and agricultural mortgage loans by generally lending up to 75% of the estimated fair value of theunderlying real estate collateral.

We manage our residential mortgage loan portfolio in a similar manner to reduce risk of concentration, with 92% collateralized by properties located in theUnited States, and the remaining 8% collateralized by properties located outside the United States, at December 31, 2018 . The carrying values of our residentialmortgage loans located in California, Florida, and New York were 31% , 9% , and 6% , respectively, of total residential mortgage loans at December 31, 2018 .

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Commercial Mortgage Loans by Geographic Region and Property Type . Commercial mortgage loans are the largest component of the mortgage loan investedasset class. The tables below present the diversification across geographic regions and property types of commercial mortgage loans at:

December 31,

2018 2017

Amount % ofTotal Amount % of

Total

(Dollars in millions)

Region Pacific $ 10,884 22.5% $ 9,875 22.3%International 9,281 19.1 9,101 20.5Middle Atlantic 7,911 16.3 7,231 16.3South Atlantic 6,347 13.1 5,311 12.0West South Central 3,951 8.1 3,819 8.6East North Central 2,840 5.9 2,683 6.0New England 1,481 3.1 901 2.0Mountain 1,387 2.9 1,188 2.7West North Central 594 1.2 477 1.1East South Central 564 1.2 840 1.9Multi-Region and Other 3,223 6.6 2,949 6.6Total recorded investment 48,463 100.0% 44,375 100.0%

Less: valuation allowances 238 214 Carrying value, net of valuation allowances $ 48,225 $ 44,161

Property Type Office $ 23,995 49.5% $ 22,602 50.9%Retail 9,089 18.7 8,032 18.1Apartment 7,018 14.5 6,113 13.8Industrial 3,719 7.7 3,125 7.0Hotel 3,479 7.2 3,620 8.2Other 1,163 2.4 883 2.0Total recorded investment 48,463 100.0% 44,375 100.0%

Less: valuation allowances 238 214 Carrying value, net of valuation allowances $ 48,225 $ 44,161

__________________

Mortgage Loan Credit Quality — Monitoring Process. We monitor our mortgage loan investments on an ongoing basis, including a review of loans that arecurrent, past due, restructured and under foreclosure. See Note 8 of the Notes to the Consolidated Financial Statements for tables that present mortgage loans bycredit quality indicator, past due and nonaccrual mortgage loans, impaired loans, as well as the carrying value of foreclosed mortgage loans included in real estateand real estate joint ventures.

We review our commercial mortgage loans on an ongoing basis. These reviews may include an analysis of the property financial statements and rent roll, leaserollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios andtenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, aswell as loans with higher loan-to-value ratios and lower debt service coverage ratios. The monitoring process for agricultural mortgage loans is generally similar,with a focus on higher risk loans, such as loans with higher loan-to-value ratios, including reviews on a geographic and sector basis. We review our residentialmortgage loans on an ongoing basis . Se e Note 8 o f the Notes to the Consolidated Financial Statements for information on our evaluation of residential mortgageloans and related valuation allowance methodology.

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Loan-to-value ratios and debt service coverage ratios are common measures in the assessment of the quality of commercial mortgage loans. Loan-to-valueratios are a common measure in the assessment of the quality of agricultural mortgage loans. Loan-to-value ratios compare the amount of the loan to the estimatedfair value of the underlying collateral. A loan-to-value ratio greater than 100% indicates that the loan amount is greater than the collateral value. A loan-to-valueratio of less than 100% indicates an excess of collateral value over the loan amount. Generally, the higher the loan-to-value ratio, the higher the risk ofexperiencing a credit loss. The debt service coverage ratio compares a property’s net operating income to amounts needed to service the principal and interest dueunder the loan. Generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss. For our commercial mortgage loans, ouraverage loan-to-value ratio was 55% and 54% at December 31, 2018 and 2017 , respectively, and our average debt service coverage ratio was 2.5x and 2.7x atDecember 31, 2018 and 2017 , respectively. The debt service coverage ratio, as well as the values utilized in calculating the ratio, is updated annually on a rollingbasis, with a portion of the portfolio updated each quarter. In addition, the loan-to-value ratio is routinely updated for all but the lowest risk loans as part of ourongoing review of our commercial mortgage loan portfolio. For our agricultural mortgage loans, our average loan-to-value ratio was 46% and 44% at December31, 2018 and 2017 , respectively. The values utilized in calculating the agricultural mortgage loan loan-to-value ratio are developed in connection with the ongoingreview of the agricultural loan portfolio and are routinely updated.

Mortgage Loan Valuation Allowances. Our valuation allowances are established both on a loan specific basis for those loans considered impaired where aproperty specific or market specific risk has been identified that could likely result in a future loss, as well as for pools of loans with similar risk characteristicswhere a property specific or market specific risk has not been identified, but for which we expect to incur a loss. Accordingly, a valuation allowance is provided toabsorb these estimated probable credit losses.

The determination of the amount of valuation allowances is based upon our periodic evaluation and assessment of known and inherent risks associated withour loan portfolios. Such evaluations and assessments are based upon several factors, including our experience for loan losses, defaults and loss severity, and lossexpectations for loans with similar risk characteristics. These evaluations and assessments are revised as conditions change and new information becomesavailable, which can cause the valuation allowances to increase or decrease over time as such evaluations are revised. Negative credit migration, including anactual or expected increase in the level of problem loans, will result in an increase in the valuation allowance. Positive credit migration, including an actual orexpected decrease in the level of problem loans, will result in a decrease in the valuation allowance.

See Note 8 of the Notes to the Consolidated Financial Statements for information about how valuation allowances are established and monitored and activityin and balances of the valuation allowance as of and for the years ended December 31, 2018 , 2017 and 2016 .

RealEstateandRealEstateJointVentures

Real estate and real estate joint ventures is comprised of wholly-owned real estate and joint ventures with interests in single property income-producing realestate, and to a lesser extent joint ventures with interests in multi-property projects with varying strategies ranging from the development of properties to theoperation of income-producing properties, as well as a runoff portfolio. The carrying values of real estate and real estate joint ventures was $9.7 billion and $9.6billion , or 2.1% and 2.1% of cash and invested assets, at December 31, 2018 and 2017 , respectively. The estimated fair value of our real estate investments was$15.4 billion and $14.9 billion at December 31, 2018 and 2017 , respectively. The total gross market value of such real estate investments was $20.1 billion and$19.1 billion at December 31, 2018 and 2017 , respectively. Gross market value is the total estimated fair value of these investments regardless of encumberingdebt.

There were no impairments recognized on real estate and real estate joint ventures for the year ended December 31, 2018 , however impairments were $13million and less than $1 million for the years ended December 31, 2017 and 2016 , respectively. Depreciation expense on real estate investments was $92 million ,$103 million and $92 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Real estate investments were net of accumulated depreciationof $931 million and $898 million at December 31, 2018 and 2017 , respectively.

We diversify our real estate investments by both geographic region and property type to reduce risk of concentration.

Geographical diversification: Of our real estate investments, excluding funds, 63% were located in the United States, with the remaining 37% located outsidethe United States, at December 31, 2018 . The carrying value of our real estate investments, excluding funds, located in Japan, California and DC were 33% , 13%and 10% , respectively, of total real estate investments, excluding funds, at December 31, 2018 . Real estate funds were 20% of our real estate investments atDecember 31, 2018 . The majority of these funds hold underlying real estate investments that are well diversified across the United States.

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Property type diversification: Real estate and real estate joint venture investments by property type are categorized by sector as follows at:

December 31,

2018 2017

Carrying

Value % ofTotal

CarryingValue

% ofTotal

(Dollars in millions)Office $ 3,922 40.4% $ 3,728 38.7%Real estate funds 1,921 19.8 1,324 13.7Retail 1,206 12.4 1,114 11.6Apartment 872 9.0 1,521 15.8Land 676 7.0 727 7.5Hotel 555 5.7 475 4.9Industrial 307 3.2 361 3.8Agriculture 27 0.3 29 0.3Other 212 2.2 358 3.7

Total real estate and real estate joint ventures $ 9,698 100.0% $ 9,637 100.0%

OtherLimitedPartnershipInterests

Other limited partnership interests are comprised of investments in private funds, including private equity funds and hedge funds. At December 31, 2018 and2017 , the carrying value of other limited partnership interests was $6.6 billion and $5.7 billion, or 1.5% and 1.3% of cash and invested assets, which included $634million and $643 million of hedge funds, respectively. Cash distributions on these investments are generated from investment gains, operating income from theunderlying investments of the funds and liquidation of the underlying investments of the funds.

OtherInvestedAssets

The following table presents the carrying value of our other invested assets by type at:

December 31,

2018 2017

Carrying Value % of Total Carrying Value % of Total (Dollars in millions)

Freestanding derivatives with positive estimated fair values $ 8,969 49.3% $ 8,551 49.5%

Tax credit and renewable energy partnerships 2,457 13.5 3,167 18.3

Annuities funding structured settlement claims (1) 1,279 7.0 1,284 7.4

Direct financing leases 1,192 6.5 1,323 7.7

Leveraged leases 1,108 6.1 1,278 7.4

Operating joint ventures 796 4.4 539 3.1

FHLB common stock (2) 793 4.4 — —

Funds withheld 416 2.3 298 1.7

Other 1,180 6.5 823 4.9

Total $ 18,190 100% $ 17,263 100%

Percentage of cash and invested assets 4.0% 3.8%

(1) See Note 3 of the Notes to the Consolidated Financial Statements.

(2) See Note 8 of the Notes to the Consolidated Financial Statements.

Leveraged lease impairments were $105 million , $79 million and $77 million for the years ended December 31, 2018 , 2017 and 2016 , respectively.

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See Notes 1 , 8 and 9 of the Notes to the Consolidated Financial Statements for information regarding freestanding derivatives with positive estimated fairvalues, tax credit and renewable energy partnerships, leveraged and direct financing leases, annuities funding structured settlement claims, FHLB common stock,operating joint ventures and funds withheld.

Derivatives

DerivativeRisks

We are exposed to various risks relating to our ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market.We use a variety of strategies to manage these risks, including the use of derivatives. See Note 9 of the Notes to the Consolidated Financial Statements for:

• A comprehensive description of the nature of our derivatives, including the strategies for which derivatives are used in managing various risks.

• Information about the gross notional amount, estimated fair value, and primary underlying risk exposure of our derivatives by type of hedge designation,excluding embedded derivatives held at December 31, 2018 and 2017 .

• The statement of operations effects of derivatives in net investments in foreign operations, cash flow, fair value, or nonqualifying hedge relationships forthe years ended December 31, 2018 , 2017 and 2016 .

See “Quantitative and Qualitative Disclosures About Market Risk — Management of Market Risk Exposures — Hedging Activities” for more informationabout our use of derivatives by major hedge program.

FairValueHierarchy

See Note 10 of the Notes to the Consolidated Financial Statements for derivatives measured at estimated fair value on a recurring basis and theircorresponding fair value hierarchy.

The valuation of Level 3 derivatives involves the use of significant unobservable inputs and generally requires a higher degree of management judgment orestimation than the valuations of Level 1 and Level 2 derivatives. Although Level 3 inputs are unobservable, management believes they are consistent with whatother market participants would use when pricing such instruments and are considered appropriate given the circumstances. The use of different inputs ormethodologies could have a material effect on the estimated fair value of Level 3 derivatives and could materially affect net income.

Derivatives categorized as Level 3 at December 31, 2018 include: interest rate forwards with maturities which extend beyond the observable portion of theyield curve; interest rate total return swaps with unobservable repurchase rates; foreign currency swaps and forwards with certain unobservable inputs, includingthe unobservable portion of the yield curve; credit default swaps priced using unobservable credit spreads, or that are priced through independent broker quotations;equity variance swaps with unobservable volatility inputs; and equity index options with unobservable correlation inputs. At December 31, 2018 , less than 1% ofthe estimated fair value of our derivatives was priced through independent broker quotations.

See Note 10 of the Notes to the Consolidated Financial Statements for a rollforward of the fair value measurements for derivatives measured at estimated fairvalue on a recurring basis using significant unobservable (Level 3) inputs.

The gain (loss) on Level 3 derivatives primarily relates to foreign currency swaps and forwards that are valued using an unobservable portion of the swap yieldcurves and interest rate total return swaps with unobservable repurchase rates. Other significant inputs, which are observable, include equity index levels, equityvolatility and the swap yield curves. We validate the reasonableness of these inputs by valuing the positions using internal models and comparing the results tobroker quotations.

The gain (loss) on Level 3 derivatives, percentage of gain (loss) attributable to observable and unobservable inputs, and the primary drivers of observable gain(loss) are summarized as follows:

Year Ended December 31, 2018Gain (loss) recognized in net income (loss) ($161) million

Approximate percentage of gain (loss) attributable to observable inputs 31%

Primary drivers of observable gain (loss) Increases in interest rates on interest rate total return swaps

Approximate percentage of gain (loss) attributable to unobservable inputs 69%

See “— Summary of Critical Accounting Estimates — Derivatives” for further information on the estimates and assumptions that affect derivatives.

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CreditRisk

See Note 9 of the Notes to the Consolidated Financial Statements for information about how we manage credit risk related to derivatives and for the estimatedfair value of our net derivative assets and net derivative liabilities after the application of master netting agreements and collateral.

Our policy is not to offset the fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement.This policy applies to the recognition of derivatives on the consolidated balance sheets, and does not affect our legal right of offset.

CreditDerivatives

The following table presents the gross notional amount and estimated fair value of credit default swaps at:

December 31,

2018 2017

Credit Default Swaps

GrossNotionalAmount

EstimatedFair Value

GrossNotionalAmount

EstimatedFair Value

(In millions)Purchased $ 1,903 $ (14) $ 2,020 $ (36)Written 11,391 82 11,375 271

Total $ 13,294 $ 68 $ 13,395 $ 235

The following table presents the gross gains, gross losses and net gains (losses) recognized in net derivative gains (losses) for credit default swaps as follows:

Years Ended December 31,

2018 2017

Credit Default Swaps GrossGains

GrossLosses

NetGains

(Losses) GrossGains

GrossLosses

NetGains

(Losses)

(In millions)Purchased (1) $ 17 $ (11) $ 6 $ 5 $ (29) $ (24)Written (1) 24 (156) (132) 152 (7) 145

Total $ 41 $ (167) $ (126) $ 157 $ (36) $ 121__________________

(1) Gains (losses) do not include earned income (expense) on credit default swaps.

The favorable change in net gains (losses) on purchased credit default swaps of $30 million was due to certain credit spreads on credit default swaps hedgingcertain bonds widening in the current period as compared to narrowing in the prior period. The unfavorable change in net gains (losses) on written credit defaultswaps of ($277) million was due to certain credit spreads on certain credit default swaps used as replications widening in the current period as compared tonarrowing the prior period.

The maximum amount at risk related to our written credit default swaps is equal to the corresponding gross notional amount. In a replication transaction, wepair an asset on our balance sheet with a written credit default swap to synthetically replicate a corporate bond, a core asset holding of life insurance companies.Replications are entered into in accordance with the guidelines approved by state insurance regulators and the NAIC and are an important tool in managing theoverall corporate credit risk within the Company. In order to match our long-dated insurance liabilities, we seek to buy long-dated corporate bonds. In someinstances, these may not be readily available in the market, or they may be issued by corporations to which we already have significant corporate credit exposure.For example, by purchasing Treasury bonds (or other high-quality assets) and associating them with written credit default swaps on the desired corporate creditname, we can replicate the desired bond exposures and meet our ALM needs. In addition, given the shorter tenor of the credit default swaps (generally five-yeartenors) versus a long-dated corporate bond, we have more flexibility in managing our credit exposures.

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EmbeddedDerivatives

See Note 10 of the Notes to the Consolidated Financial Statements for information about embedded derivatives measured at estimated fair value on arecurring basis and their corresponding fair value hierarchy and a rollforward of the fair value measurements for embedded derivatives measured at estimated fairvalue on a recurring basis using significant unobservable (Level 3) inputs.

See Note 9 of the Notes to the Consolidated Financial Statements for information about the nonperformance risk adjustment included in the valuation ofguaranteed minimum benefits accounted for as embedded derivatives.

See “— Summary of Critical Accounting Estimates — Derivatives” for further information on the estimates and assumptions that affect embedded derivatives.

Off-Balance Sheet Arrangements

CreditandCommittedFacilities

We maintain an unsecured revolving credit facility, as well as committed facilities, with various financial institutions. See “— Liquidity and Capital Resources— The Company — Liquidity and Capital Sources — Global Funding Sources — Credit and Committed Facilities” for further descriptions of such arrangements.For the classification of expenses on such credit and committed facilities and the nature of the associated liability for letters of credit issued and drawdowns onthese credit and committed facilities, see Note 12 of the Notes to the Consolidated Financial Statements.

CollateralforSecuritiesLending,Third-PartyCustodianAdministeredRepurchaseProgramsandDerivatives

We participate in a securities lending program and third-party custodian administered repurchase programs in the normal course of business for the purpose ofenhancing the total return on our investment portfolio. See Notes 1 and 8 of the Notes to the Consolidated Financial Statements for further discussion of oursecurities lending program and repurchase agreement transactions, the classification of revenues and expenses, and the nature of the secured financingarrangements and associated liabilities.

Securities lending: Periodically we receive non-cash collateral for securities lending from counterparties, which cannot be sold or re-pledged, and which isnot reflected on our consolidated balance sheets. The amount of this non-cash collateral was $78 million and $19 million at estimated fair value at December 31,2018 and 2017 , respectively.

Third-party custodian administered repurchase programs: We loan certain of our fixed maturity securities AFS to unaffiliated financial institutions and, inexchange, non-cash collateral is put on deposit by the unaffiliated financial institutions on our behalf with third-party custodians. The estimated fair value ofsecurities loaned in connection with these transactions was $78 million and $182 million at December 31, 2018 and December 31, 2017 , respectively. Non-cashcollateral on deposit with third-party custodians on our behalf was $84 million and $194 million , at estimated fair value, at December 31, 2018 andDecember 31, 2017 , respectively, which cannot be sold or re-pledged, and which is not reflected on our consolidated balance sheets.

Derivatives: We enter into derivatives to manage various risks relating to our ongoing business operations. We receive non-cash collateral from counterpartiesfor derivatives, which can be sold or re-pledged subject to certain constraints, and which is not reflected on our consolidated balance sheets. The amount of thisnon-cash collateral was $1.3 billion and $1.1 billion , at estimated fair value, at December 31, 2018 and 2017 , respectively. See “— Liquidity and CapitalResources — The Company — Liquidity and Capital Uses — Pledged Collateral” and Note 9 of the Notes to the Consolidated Financial Statements forinformation regarding the earned income on and the gross notional amount, estimated fair value of assets and liabilities and primary underlying risk exposure ofour derivatives.

LeaseCommitments

As lessee, we have entered into various lease and sublease agreements for office space and equipment. Our commitments under such lease agreements areincluded within the contractual obligations table. See “— Liquidity and Capital Resources — The Company — Contractual Obligations” and Note 20 of the Notesto the Consolidated Financial Statements.

Guarantees

See “Guarantees” in Note 20 of the Notes to the Consolidated Financial Statements.

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Other

We enter into the following additional commitments in the normal course of business for the purpose of enhancing the total return on our investment portfolio:mortgage loan commitments and commitments to fund partnerships, bank credit facilities, bridge loans and private corporate bond investments. See “NetInvestment Income” and “Net Investment Gains (Losses)” in Note 8 of the Notes to the Consolidated Financial Statements for information on the investmentincome, investment expense, and gains and losses from such investments. See also “— Investments — Fixed Maturity Securities AFS and Equity Securities” and“— Investments — Mortgage Loans” for information on our investments in fixed maturity securities AFS and mortgage loans. See “— Investments — Real Estateand Real Estate Joint Ventures” and “— Investments — Other Limited Partnership Interests” for information on our partnership investments.

Other than the commitments disclosed in Note 20 of the Notes to the Consolidated Financial Statements, there are no other material obligations or liabilitiesarising from the commitments to fund mortgage loans, partnerships, bank credit facilities, bridge loans, and private corporate bond investments. For furtherinformation on commitments to fund partnership investments, mortgage loans, bank credit facilities, bridge loans and private corporate bond investments, see “—Liquidity and Capital Resources — The Company — Contractual Obligations.”

Insolvency Assessments

See Note 20 of the Notes to the Consolidated Financial Statements.

Policyholder Liabilities

We establish, and carry as liabilities, actuarially determined amounts that are calculated to meet policy obligations or to provide for future annuity payments.Amounts for actuarial liabilities are computed and reported on the consolidated financial statements in conformity with GAAP. For more details on PolicyholderLiabilities, see “— Summary of Critical Accounting Estimates.”

Due to the nature of the underlying risks and the uncertainty associated with the determination of actuarial liabilities, we cannot precisely determine theamounts that will ultimately be paid with respect to these actuarial liabilities, and the ultimate amounts may vary from the estimated amounts, particularly whenpayments may not occur until well into the future.

We periodically review our estimates of actuarial liabilities for future benefits and compare them with our actual experience. We revise estimates, to the extentpermitted or required under GAAP, if we determine that future expected experience differs from assumptions used in the development of actuarial liabilities. Wecharge or credit changes in our liabilities to expenses in the period the liabilities are established or re-estimated. If the liabilities originally established for futurebenefit payments prove inadequate, we must increase them. Such an increase could adversely affect our earnings and have a material adverse effect on ourbusiness, results of operations and financial condition.

We have experienced, and will likely in the future experience, catastrophe losses and possibly acts of terrorism, as well as turbulent financial markets that mayhave an adverse impact on our business, results of operations and financial condition. Due to their nature, we cannot predict the incidence, timing, severity oramount of losses from catastrophes and acts of terrorism, but we make broad use of catastrophic and non-catastrophic reinsurance to manage risk from these perils.We also use hedging, reinsurance and other risk management activities to mitigate financial market volatility.

See “Business — Regulation — Insurance Regulation — Policy and Contract Reserve Adequacy Analysis” for information regarding required analyses of theadequacy of statutory reserves of our insurance operations.

FuturePolicyBenefits

We establish liabilities for amounts payable under insurance policies. See Notes 1 and 4 of the Notes to the Consolidated Financial Statements, “— IndustryTrends — Impact of a Sustained Low Interest Rate Environment — Low Interest Rate Scenario” and “— Variable Annuity Guarantees.” A discussion of futurepolicy benefits by segment (as well as Corporate & Other) follows.

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U.S.

Amounts payable under insurance policies for this segment are comprised of group insurance and annuities, as well as property and casualty policies. Forgroup insurance, future policyholder benefits are comprised mainly of liabilities for disabled lives under disability waiver of premium policy provisions,liabilities for survivor income benefit insurance, active life policies and premium stabilization and other contingency liabilities held under life insurancecontracts. For group annuity contracts, future policyholder benefits are primarily related to payout annuities, including pension risk transfers, structuredsettlement annuities and institutional income annuities. There is no interest rate crediting flexibility on these liabilities. As a result, a sustained low interest rateenvironment could negatively impact earnings; however, we mitigate our risks by applying various ALM strategies, including the use of various interest ratederivative positions. The components of future policy benefits related to our property and casualty policies are liabilities for unpaid claims, estimated based uponassumptions such as rates of claim frequencies, levels of severities, inflation, judicial trends, legislative changes or regulatory decisions. Assumptions are basedupon our historical experience and analysis of historical development patterns of the relationship of loss adjustment expenses to losses for each line of business,and we consider the effects of current developments, anticipated trends and risk management programs, reduced for anticipated salvage and subrogation.

Asia

Future policy benefits for this segment are held primarily for traditional life, endowment, annuity and accident & health contracts. They are also held fortotal return pass-through provisions included in certain universal life and savings products. They include certain liabilities for variable annuity and variable lifeguarantees of minimum death benefits, and longevity guarantees. Factors impacting these liabilities include sustained periods of lower yields than ratesestablished at policy issuance, lower than expected asset reinvestment rates, market volatility, actual lapses resulting in lower than expected income, and actualmortality or morbidity resulting in higher than expected benefit payments. We mitigate our risks by applying various ALM strategies.

LatinAmerica

Future policy benefits for this segment are held primarily for immediate annuities in Chile, Argentina and Mexico and traditional life contracts mainly inMexico, Brazil and Colombia. There are also liabilities held for total return pass-through provisions included in certain universal life and savings products inMexico. Factors impacting these liabilities include sustained periods of lower yields than rates established at policy issuance, lower than expected assetreinvestment rates, and mortality and lapses different than expected. We mitigate our risks by applying various ALM strategies.

EMEA

Future policy benefits for this segment include unearned premium reserves for group life and credit insurance contracts. Future policy benefits are also heldfor traditional life, endowment and annuity contracts with significant mortality risk and accident & health contracts. Factors impacting these liabilities includelower than expected asset reinvestment rates, market volatility, actual lapses resulting in lower than expected income, and actual mortality or morbidity resultingin higher than expected benefit payments. We mitigate our risks by having premiums which are adjustable or cancellable in some cases, and by applying variousALM strategies.

MetLifeHoldings

Future policy benefits for the life business are comprised mainly of liabilities for traditional life insurance contracts. In order to manage risk, we have oftenreinsured a portion of the mortality risk on life insurance policies. We routinely evaluate our reinsurance programs, which may result in increases or decreases toexisting coverage. We have entered into various interest rate derivative positions to mitigate the risk that investment of premiums received and reinvestment ofmaturing assets over the life of the policy will be at rates below those assumed in the original pricing of these contracts. For the annuities business, future policybenefits are comprised mainly of liabilities for life-contingent income annuities and liabilities for the variable annuity guaranteed minimum benefits that areaccounted for as insurance. Other future policyholder benefits are comprised mainly of liabilities for disabled lives under disability waiver of premium policyprovisions, and active life policies. In addition, for our other products, future policyholder benefits related to the reinsurance of our former Japan joint ventureare comprised of liabilities for the variable annuity guaranteed minimum benefits that are accounted for as insurance.

Corporate&Other

Future policy benefits primarily include liabilities for other reinsurance business.

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PolicyholderAccountBalances

Policyholder account balances are generally equal to the account value, which includes accrued interest credited, but excludes the impact of any applicablecharge that may be incurred upon surrender. See “— Industry Trends — Impact of a Sustained Low Interest Rate Environment — Low Interest Rate Scenario” and“— Variable Annuity Guarantees.” See also Notes 1 and 4 of the Notes to the Consolidated Financial Statements for additional information. A discussion ofpolicyholder account balances by segment follows.

U.S.

Policyholder account balances in this segment are comprised of funding agreements, retained asset accounts, universal life policies, the fixed account ofvariable life insurance policies and specialized life insurance products for benefit programs.

Group Benefits

Policyholder account balances in this business are held for retained asset accounts, universal life policies, the fixed account of variable life insurancepolicies and specialized life insurance products for benefit programs. Policyholder account balances are credited interest at a rate we determine, which isinfluenced by current market rates. A sustained low interest rate environment could adversely impact liabilities and earnings as a result of the minimumcredited rate guarantees present in most of these policyholder account balances. We have various interest rate derivative positions to partially mitigate the risksassociated with such a scenario.

The table below presents the breakdown of account value subject to minimum guaranteed crediting rates for Group Benefits:

December 31, 2018

Guaranteed Minimum Crediting RateAccount

Value

AccountValue at

Guarantee

(In millions)

Greater than 0% but less than 2% $ 4,776 $ 4,655Equal to or greater than 2% but less than 4% $ 1,766 $ 1,766Equal to or greater than 4% $ 742 $ 713

Retirement and Income Solutions

Policyholder account balances in this business are primarily comprised of funding agreements. Interest crediting rates vary by type of contract, and can befixed or variable. Variable interest crediting rates are generally tied to an external index, most commonly (1-month or 3-month) LIBOR. We are exposed tointerest rate risks, as well as foreign currency exchange rate risk, when guaranteeing payment of interest and return of principal at the contractual maturitydate. We may invest in floating rate assets or enter into receive-floating interest rate swaps, also tied to external indices, as well as interest rate caps, tomitigate the impact of changes in market interest rates. We also mitigate our risks by applying various ALM strategies and seek to hedge all foreign currencyexchange rate risk through the use of foreign currency hedges, including cross currency swaps.

The table below presents the breakdown of account value subject to minimum guaranteed crediting rates for RIS:

December 31, 2018

Guaranteed Minimum Crediting RateAccount

Value

AccountValue at

Guarantee

(In millions)

Greater than 0% but less than 2% $ 143 $ —Equal to or greater than 2% but less than 4% $ 1,096 $ 121Equal to or greater than 4% $ 4,624 $ 4,621

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Asia

Policyholder account balances in this segment are held largely for fixed income retirement and savings plans, fixed deferred annuities, interest sensitivewhole life products, universal life and, to a lesser degree, liability amounts for Unit-linked investments that do not meet the GAAP definition of separateaccounts. Also included are certain liabilities for retirement and savings products sold in certain countries in Asia that generally are sold with minimum creditedrate guarantees. Liabilities for guarantees on certain variable annuities in Asia are accounted for as embedded derivatives and recorded at estimated fair valueand are also included within policyholder account balances. A sustained low interest rate environment could adversely impact liabilities and earnings as a resultof the minimum credited rate guarantees present in most of these policyholder account balances. We mitigate our risks by applying various ALM strategies andwith reinsurance. Liabilities for Unit-linked investments are impacted by changes in the fair value of the associated underlying investments, as the return onassets is generally passed directly to the policyholder.

The table below presents the breakdown of account value subject to minimum guaranteed crediting rates for Asia:

December 31, 2018

Guaranteed Minimum Crediting RateAccountValue

AccountValue at

Guarantee

(In millions)

Annuities Greater than 0% but less than 2% $ 25,586 $ 1,926Equal to or greater than 2% but less than 4% $ 1,205 $ 395Equal to or greater than 4% $ 1 $ 1Life & Other Greater than 0% but less than 2% $ 10,268 $ 9,961Equal to or greater than 2% but less than 4% $ 24,573 $ 9,174Equal to or greater than 4% $ 279 $ 279

LatinAmerica

Policyholder account balances in this segment are held largely for investment-type products and universal life products in Mexico and Chile, and deferredannuities in Brazil. Some of the deferred annuities in Brazil are Unit-linked investments that do not meet the GAAP definition of separate accounts. The rest ofthe deferred annuities have minimum credited rate guarantees, which could adversely impact liabilities and earnings in a sustained low interest rate environment.Liabilities for Unit-linked investments are impacted by changes in the fair value of the associated investments, as the return on assets is generally passed directlyto the policyholder.

EMEA

Policyholder account balances in this segment are held mostly for universal life, deferred annuity, pension products, and Unit-linked investments that do notmeet the GAAP definition of separate accounts. They are also held for endowment products without significant mortality risk. A sustained low interest rateenvironment could adversely impact liabilities and earnings as a result of the minimum credited rate guarantees present in many of these policyholder accountbalances. We mitigate our risks by applying various ALM strategies. Liabilities for Unit-linked investments are impacted by changes in the fair value of theassociated investments, as the return on assets is generally passed directly to the policyholder.

MetLifeHoldings

Life policyholder account balances are held for retained asset accounts, universal life policies, the fixed account of variable life insurance policies, andfunding agreements. For annuities, policyholder account balances are held for fixed deferred annuities, the fixed account portion of variable annuities, non-lifecontingent income annuities, and embedded derivatives related to variable annuity guarantees. Interest is credited to the policyholder’s account at interest rateswe determine which are influenced by current market rates, subject to specified minimums. A sustained low interest rate environment could adversely impactliabilities and earnings as a result of the minimum credited rate guarantees present in most of these policyholder account balances. We have various interest ratederivative positions to partially mitigate the risks associated with such a scenario. Additionally, for our other products, policyholder account balances are held forvariable annuity guarantees assumed from a former operating joint venture in Japan that are accounted for as embedded derivatives.

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The table below presents the breakdown of account value subject to minimum guaranteed crediting rates for the MetLife Holdings segment:

December 31, 2018

Guaranteed Minimum Crediting RateAccount

Value

AccountValue at

Guarantee

(In millions)

Greater than 0% but less than 2% $ 1,510 $ 1,430Equal to or greater than 2% but less than 4% $ 18,733 $ 16,064Equal to or greater than 4% $ 8,098 $ 5,539

VariableAnnuityGuarantees

We issue, directly and through assumed business, certain variable annuity products with guaranteed minimum benefits that provide the policyholder aminimum return based on their initial deposit (i.e., the benefit base) less withdrawals. In some cases, the benefit base may be increased by additional deposits,bonus amounts, accruals or optional market value resets. See Notes 1 and 4 of the Notes to the Consolidated Financial Statements for additional information.

Certain guarantees, including portions thereof, have insurance liabilities established that are included in future policy benefits. Guarantees accounted for in thismanner include GMDBs, the life-contingent portion of GMWBs, elective GMIB annuitizations, and the life contingent portion of GMIBs that require annuitizationwhen the account balance goes to zero. These liabilities are accrued over the life of the contract in proportion to actual and future expected policy assessmentsbased on the level of guaranteed minimum benefits generated using multiple scenarios of separate account returns. The scenarios are based on best estimateassumptions consistent with those used to amortize DAC. When current estimates of future benefits exceed those previously projected or when current estimates offuture assessments are lower than those previously projected, liabilities will increase, resulting in a current period charge to net income. The opposite result occurswhen the current estimates of future benefits are lower than those previously projected or when current estimates of future assessments exceed those previouslyprojected. At the end of each reporting period, we update the actual amount of business remaining in-force, which impacts expected future assessments and theprojection of estimated future benefits resulting in a current period charge or increase to earnings.

Certain guarantees, including portions thereof, accounted for as embedded derivatives, are recorded at estimated fair value and included in policyholderaccount balances. Guarantees accounted for as embedded derivatives include GMABs, the non-life contingent portion of GMWBs and certain non-life contingentportions of GMIBs. The estimated fair values of guarantees accounted for as embedded derivatives are determined based on the present value of projected futurebenefits minus the present value of projected future fees. The projections of future benefits and future fees require capital market and actuarial assumptionsincluding expectations concerning policyholder behavior. A risk neutral valuation methodology is used to project the cash flows from the guarantees under multiplecapital market scenarios to determine an economic liability. The reported estimated fair value is then determined by taking the present value of these risk-freegenerated cash flows using a discount rate that incorporates a spread over the risk-free rate to reflect our nonperformance risk and adding a risk margin. For moreinformation on the determination of estimated fair value, see Note 10 of the Notes to the Consolidated Financial Statements.

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The table below presents the carrying value for guarantees at:

Future Policy

Benefits Policyholder

Account Balances

December 31, December 31,

2018 2017 2018 2017

(In millions)

Asia GMDB $ 3 $ 38 $ — $ —GMAB — — 34 19GMWB 81 92 143 182

EMEA GMDB 7 1 — —GMAB — — 24 15GMWB 70 42 (82) (90)

MetLife Holdings GMDB 289 304 — —GMIB 743 581 106 (125)GMAB — — 5 —GMWB 129 183 563 322Total $ 1,322 $ 1,241 $ 793 $ 323

The carrying amounts for guarantees included in policyholder account balances above include nonperformance risk adjustments of $263 million and$130 million at December 31, 2018 and 2017 , respectively. These nonperformance risk adjustments represent the impact of including a credit spread whendiscounting the underlying risk neutral cash flows to determine the estimated fair values. The nonperformance risk adjustment does not have an economic impacton us as it cannot be monetized given the nature of these policyholder liabilities. The change in valuation arising from the nonperformance risk adjustment is nothedged.

The carrying values of these guarantees can change significantly during periods of sizable and sustained shifts in equity market performance, equity volatility,interest rates or foreign currency exchange rates. Carrying values are also impacted by our assumptions around mortality, separate account returns and policyholderbehavior, including lapse rates.

As discussed below, we use a combination of product design, hedging strategies, reinsurance, and other risk management actions to mitigate the risks relatedto these benefits. Within each type of guarantee, there is a range of product offerings reflecting the changing nature of these products over time. Changes in productfeatures and terms are in part driven by customer demand but, more importantly, reflect our risk management practices of continuously evaluating the guaranteedbenefits and their associated asset-liability matching. We continue to diversify the concentration of income benefits in our portfolio by focusing on withdrawalbenefits, variable annuities without living benefits and index-linked annuities.

The sections below provide further detail by total account value for certain of our most popular guarantees. Total account values include amounts not reportedon the consolidated balance sheets from assumed business, Unit-linked investments that do not qualify for presentation as separate account assets, and amountsincluded in our general account. The total account values and the net amounts at risk include direct and assumed business, but exclude offsets from hedging orceded reinsurance, if any.

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GMDBs

We offer a range of GMDBs to our contractholders. The table below presents GMDBs, by benefit type, at December 31, 2018 :

Total Account Value (1)

Asia & EMEA MetLife Holdings

(In millions)

Return of premium or five to seven year step-up $ 6,180 $ 46,207Annual step-up — 3,074Roll-up and step-up combination — 5,500

Total $ 6,180 $ 54,781__________________

(1) Total account value excludes $230 million for contracts with no GMDBs. The Company’s annuity contracts with guarantees may offer more than one typeof guarantee in each contract. Therefore, the amounts listed for GMDBs and for living benefit guarantees are not mutually exclusive.

Based on total account value, less than 19% of our GMDBs included enhanced death benefits such as the annual step-up or roll-up and step-up combinationproducts. We expect the above GMDB risk profile to be relatively consistent for the foreseeable future.

LivingBenefitGuarantees

The table below presents our living benefit guarantees based on total account values at December 31, 2018 :

Total Account Value (1)

Asia & EMEA MetLife Holdings

(In millions)

GMIB $ — $ 20,692GMWB - non-life contingent (2) 1,954 2,608GMWB - life-contingent 2,961 9,373GMAB 988 368

Total $ 5,903 $ 33,041__________________

(1) Total account value excludes $22.0 billion for contracts with no living benefit guarantees. The Company’s annuity contracts with guarantees may offer morethan one type of guarantee in each contract. Therefore, the amounts listed for GMDBs and for living benefit guarantee amounts are not mutually exclusive.

(2) The Asia and EMEA segments include the non-life contingent portion of the GMWB total account value of $936 million with a guarantee at annuitization.

In terms of total account value, GMIBs are our most significant living benefit guarantee. Our primary risk management strategy for our GMIB products isour derivatives hedging program as discussed below. Additionally, we have engaged in certain reinsurance agreements covering some of our GMIB business. Aspart of our overall risk management approach for living benefit guarantees, we continually monitor the reinsurance markets for the right opportunity to purchaseadditional coverage for our GMIB business. We stopped selling GMIBs in February 2016.

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The table below presents our GMIB associated total account values, by their guaranteed payout basis, at December 31, 2018 :

Total

Account Value

(In millions)

7-year setback, 2.5% interest rate $ 5,5087-year setback, 1.5% interest rate 89910-year setback, 1.5% interest rate 4,38410-year mortality projection, 10-year setback, 1.0% interest rate 8,38910-year mortality projection, 10-year setback, 0.5% interest rate 1,512

$ 20,692

The annuitization interest rates on GMIBs have been decreased from 2.5% to 0.5% over time, partially in response to the low interest rate environment,accompanied by an increase in the setback period from seven years to 10 years and the introduction of a 10-year mortality projection.

Additionally, 42% of the $20.7 billion of GMIB total account value has been invested in managed volatility funds as of December 31, 2018 . These fundsseek to manage volatility by adjusting the fund holdings within certain guidelines based on capital market movements. Such activity reduces the overall risk ofthe underlying funds while maintaining their growth opportunities. These risk mitigation techniques reduce or eliminate the need for us to manage the funds’volatility through hedging or reinsurance.

Our GMIB products typically have a waiting period of 10 years to be eligible for annuitization. As of December 31, 2018 , only 19% of our contracts withGMIBs were eligible for annuitization. The remaining contracts are not eligible for annuitization for an average of five years.

Once eligible for annuitization, contractholders would be expected to annuitize only if their contracts were in-the-money. We calculate in-the-moneynesswith respect to GMIBs consistent with net amount at risk as discussed in Note 4 of the Notes to the Consolidated Financial Statements, by comparing thecontractholders’ income benefits based on total account values and current annuity rates versus the guaranteed income benefits. The net amount at risk was $483million at December 31, 2018 , of which $418 million was related to GMIBs. For those contracts with GMIB, the table below presents details of contracts thatare in-the-money and out-of-the-money at December 31, 2018 :

In-the-Moneyness Total

Account Value % of Total

(In millions)

In-the-money 30% + $ 382 2% 20% to 30% 302 2% 10% to 20% 546 3% 0% to 10% 1,184 6% 2,414 Out-of-the-money -10% to 0% 2,321 11% -20% to 10% 3,077 15% -20% + 12,880 62% 18,278 Total GMIBs $ 20,692

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DerivativesHedgingVariableAnnuityGuarantees

Our risk mitigating hedging strategy uses various OTC and exchange traded derivatives. The table below presents the gross notional amount, estimated fairvalue and primary underlying risk exposure of the derivatives hedging our variable annuity guarantees:

December 31,

2018 2017

Primary Underlying Risk Exposure

Gross Notional Estimated Fair Value Gross Notional Estimated Fair Value

Instrument Type Amount Assets Liabilities Amount Assets Liabilities

(In millions)

Interest rate Interest rate swaps $ 8,209 $ 89 $ 3 $ 16,080 $ 433 $ 22

Interest rate futures 1,559 1 3 3,060 1 4

Interest rate options 838 163 — 10,173 486 11Foreign currency exchange rate Foreign currency forwards 1,815 44 9 2,288 5 36Equity market Equity futures 2,730 11 77 3,781 17 4

Equity index options 9,933 408 546 9,546 383 690

Equity variance swaps 2,269 40 87 4,661 54 199

Equity total return swaps 929 91 — 1,117 — 41

Total $ 28,282 $ 847 $ 725 $ 50,706 $ 1,379 $ 1,007

The change in estimated fair values of our derivatives is recorded in policyholder benefits and claims if such derivatives are hedging guarantees included infuture policy benefits, and in net derivative gains (losses) if such derivatives are hedging guarantees included in policyholder account balances.

Our hedging strategy involves the significant use of static longer-term derivative instruments to avoid the need to execute transactions during periods ofmarket disruption or higher volatility. We continually monitor the capital markets for opportunities to adjust our liability coverage, as appropriate. Futures arealso used to dynamically adjust the daily coverage levels as markets and liability exposures fluctuate.

We remain liable for the guaranteed benefits in the event that reinsurers or derivative counterparties are unable or unwilling to pay. Certain of ourreinsurance agreements and substantially all derivative positions are collateralized and derivatives positions are subject to master netting agreements, both ofwhich significantly reduce the exposure to counterparty risk. In addition, we are subject to the risk that hedging and other risk management actions proveineffective or that unanticipated policyholder behavior or mortality, combined with adverse market events, produces economic losses beyond the scope of therisk management techniques employed.

Liquidity and Capital Resources

Overview

Our business and results of operations are materially affected by conditions in the global capital markets and the economy generally. Stressed conditions,volatility and disruptions in global capital markets, particular markets, or financial asset classes can have an adverse effect on us, in part because we have a largeinvestment portfolio and our insurance liabilities and derivatives are sensitive to changing market factors. Changing conditions in the global capital markets and theeconomy may affect our financing costs and market interest for our debt or equity securities. For further information regarding market factors that could affect ourability to meet liquidity and capital needs, see “— Industry Trends” and “— Investments — Current Environment.”

LiquidityManagement

Based upon the strength of our franchise, diversification of our businesses, strong financial fundamentals and the substantial funding sources available to usas described herein, we continue to believe we have access to ample liquidity to meet business requirements under current market conditions and reasonablypossible stress scenarios. We continuously monitor and adjust our liquidity and capital plans for MetLife, Inc. and its subsidiaries in light of market conditions,as well as changing needs and opportunities.

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Short-term Liquidity

We maintain a substantial short-term liquidity position, which was $11.1 billion and $10.0 billion at December 31, 2018 and 2017 , respectively. Short-term liquidity includes cash and cash equivalents and short-term investments, excluding assets that are pledged or otherwise committed, including amountsreceived in connection with securities lending, repurchase agreements, derivatives, and secured borrowings, as well as amounts held in the closed block.

Liquid Assets

An integral part of our liquidity management includes managing our level of liquid assets, which was $202.7 billion and $209.1 billion at December 31,2018 and 2017 , respectively. Liquid assets include cash and cash equivalents, short-term investments and publicly-traded securities, excluding assets that arepledged or otherwise committed. Assets pledged or otherwise committed include amounts received in connection with securities lending, repurchaseagreements, derivatives, regulatory deposits, the collateral financing arrangement, funding agreements and secured borrowings, as well as amounts held in theclosed block.

CapitalManagement

We have established several senior management committees as part of our capital management process. These committees, including the CapitalManagement Committee and the Enterprise Risk Committee (“ERC”), regularly review actual and projected capital levels (under a variety of scenarios includingstress scenarios) and our annual capital plan in accordance with our capital policy. The Capital Management Committee is comprised of members of seniormanagement, including MetLife, Inc.’s Chief Financial Officer (“CFO”), Treasurer, and Chief Risk Officer (“CRO”). The ERC is also comprised of members ofsenior management, including MetLife, Inc.’s CFO, CRO and Chief Investment Officer.

Our Board of Directors and senior management are directly involved in the development and maintenance of our capital policy. The capital policy sets forth,among other things, minimum and target capital levels and the governance of the capital management process. All capital actions, including proposed changes tothe annual capital plan, capital targets or capital policy, are reviewed by the Finance and Risk Committee of the Board of Directors prior to obtaining full Boardof Directors approval. The Board of Directors approves the capital policy and the annual capital plan and authorizes capital actions, as required.

See “Risk Factors — Capital Risks — Legal and Regulatory Restrictions May Prevent Us from Paying Dividends and Repurchasing Our Stock at the LevelWe Wish” and Note 15 of the Notes to the Consolidated Financial Statements for information regarding restrictions on payment of dividends and stockrepurchases. See also “— The Company — Liquidity and Capital Uses — Common Stock Repurchases” for information regarding MetLife, Inc.’s commonstock repurchase authorizations.

TheCompany

Liquidity

Liquidity refers to the ability to generate adequate amounts of cash to meet our needs. We determine our liquidity needs based on a rolling 12-monthforecast by portfolio of invested assets which we monitor daily. We adjust the asset mix and asset maturities based on this rolling 12-month forecast. To supportthis forecast, we conduct cash flow and stress testing, which include various scenarios of the potential risk of early contractholder and policyholder withdrawal.We include provisions limiting withdrawal rights on many of our products, including general account pension products sold to employee benefit plan sponsors.Certain of these provisions prevent the customer from making withdrawals prior to the maturity date of the product. In the event of significant cash requirementsbeyond anticipated liquidity needs, we have various alternatives available depending on market conditions and the amount and timing of the liquidity need.These available alternatives include cash flows from operations, sales of liquid assets, global funding sources including commercial paper and various credit andcommitted facilities.

Under certain stressful market and economic conditions, our access to liquidity may deteriorate, or the cost to access liquidity may increase. If we requiresignificant amounts of cash on short notice in excess of anticipated cash requirements or if we are required to post or return cash collateral in connection withderivatives or our securities lending program, we may have difficulty selling investments in a timely manner, be forced to sell them for less than we otherwisewould have been able to realize, or both. In addition, in the event of such forced sale, for securities in an unrealized loss position, realized losses would beincurred on securities sold and impairments would be incurred, if there is a need to sell securities prior to recovery, which may negatively impact our financialcondition. See “Risk Factors — Investment Risks — We May Have Difficulty Selling Certain Holdings in Our Investment Portfolio or in Our Securities LendingProgram in a Timely Manner and Realizing Full Value.”

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All general account assets within a particular legal entity — other than those which may have been pledged to a specific purpose — are generally availableto fund obligations of the general account of that legal entity.

Capital

We manage our capital position to maintain our financial strength and credit ratings. Our capital position is supported by our ability to generate strong cashflows within our operating companies and borrow funds at competitive rates, as well as by our demonstrated ability to raise additional capital to meet operatingand growth needs despite adverse market and economic conditions.

Rating Agencies

Rating agencies assign insurer financial strength ratings to MetLife, Inc.’s U.S. life insurance subsidiaries and credit ratings to MetLife, Inc. and certain ofits subsidiaries. Financial strength ratings represent the opinion of rating agencies regarding the ability of an insurance company to pay obligations underinsurance policies and contracts in accordance with their terms. Credit ratings indicate the rating agency’s opinion regarding a debt issuer’s ability to meet theterms of debt obligations in a timely manner. They are important factors in our overall funding profile and ability to access certain types of liquidity. The leveland composition of regulatory capital at the subsidiary level and our equity capital are among the many factors considered in determining our insurer financialstrength ratings and credit ratings. Each agency has its own capital adequacy evaluation methodology, and assessments are generally based on a combinationof factors. In addition to heightening the level of scrutiny that they apply to insurance companies, rating agencies have increased and may continue to increasethe frequency and scope of their credit reviews, may request additional information from the companies that they rate and may adjust upward the capital andother requirements employed in the rating agency models for maintenance of certain ratings levels.

Downgrades in our insurer financial strength ratings could have a material adverse effect on our financial condition and results of operations in manyways. See “Risk Factors — Economic Environment and Capital Markets Risks — A Downgrade or a Potential Downgrade in Our Financial Strength or CreditRatings Could Result in a Loss of Business and Materially Adversely Affect Our Financial Condition and Results of Operations.”

A downgrade in the credit ratings or insurer financial strength ratings of MetLife, Inc. or its subsidiaries would likely impact us in the following ways,including:

• impact our ability to generate cash flows from the sale of funding agreements and other capital market products offered by our RIS business;

• impact the cost and availability of financing for MetLife, Inc. and its subsidiaries; and

• result in additional collateral requirements or other required payments under certain agreements, which are eligible to be satisfied in cash or by postinginvestments held by the subsidiaries subject to the agreements. See “— Liquidity and Capital Uses — Pledged Collateral.”

Statutory Capital and Dividends

Our U.S. insurance subsidiaries have statutory surplus well above levels to meet current regulatory requirements.

RBC requirements are used as minimum capital requirements by the NAIC and the state insurance departments to identify companies that merit regulatoryaction. RBC is based on a formula calculated by applying factors to various asset, premium, claim, expense and statutory reserve items. The formula takes intoaccount the risk characteristics of the insurer, including asset risk, insurance risk, interest rate risk, market risk and business risk and is calculated on an annualbasis. The formula is used as an early warning regulatory tool to identify possible inadequately capitalized insurers for purposes of initiating regulatory action,and not as a means to rank insurers generally. These rules apply to most of our U.S. insurance subsidiaries. State insurance laws provide insurance regulatorsthe authority to require various actions by, or take various actions against, insurers whose total adjusted capital does not meet or exceed certain RBC levels. Asof the date of the most recent annual statutory financial statements filed with insurance regulators, the total adjusted capital of each of these subsidiariessubject to these requirements was in excess of each of those RBC levels.

As a Delaware corporation, American Life is subject to Delaware law; however, because it does not conduct insurance business in Delaware or any otherU.S. state, it is exempt from RBC requirements under Delaware law. American Life’s operations are also regulated by applicable authorities of thejurisdictions in which it operates and is subject to capital and solvency requirements in those jurisdictions.

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The amount of dividends that our insurance subsidiaries can pay to MetLife, Inc. or to other parent entities is constrained by the amount of surplus wehold to maintain our ratings and provides an additional margin for risk protection and investment in our businesses. We proactively take actions to maintaincapital consistent with these ratings objectives, which may include adjusting dividend amounts and deploying financial resources from internal or externalsources of capital. Certain of these activities may require regulatory approval. Furthermore, the payment of dividends and other distributions to MetLife, Inc.and other parent entities by their respective insurance subsidiaries is governed by insurance laws and regulations. See “Business — Regulation — InsuranceRegulation,” “— MetLife, Inc. — Liquidity and Capital Sources — Dividends from Subsidiaries” and Note 15 of the Notes to the Consolidated FinancialStatements.

Affiliated Captive Reinsurance Transactions

MLIC cedes specific policy classes, including term and universal life insurance, participating whole life insurance, LTD insurance, group life insuranceand other business to various wholly-owned captive reinsurers. The reinsurance activities among these affiliated companies are eliminated within ourconsolidated results of operations. The statutory reserves of such affiliated captive reinsurers are supported by a combination of funds withheld assets,investment assets and letters of credit issued by unaffiliated financial institutions. MetLife, Inc. has entered into various support agreements in connection withthe activities of these captive reinsurers. See “— MetLife, Inc. — Liquidity and Capital Uses — Support Agreements” for further details on certain of theseguarantees. MLIC has entered into reinsurance agreements with affiliated captive reinsurers for risk and capital management purposes, as well as to managestatutory reserve requirements related to universal life and term life insurance policies and other business.

The NYDFS continues to have a moratorium on new reserve financing transactions involving captive insurers. We are not aware of any states other thanNew York and California implementing such a moratorium. While such a moratorium would not impact our existing reinsurance agreements with captivereinsurers, a moratorium placed on the use of captives for new reserve financing transactions could impact our ability to write certain products and/or impactour RBC ratios and ability to deploy excess capital in the future. This could result in our need to increase prices, modify product features or limit theavailability of those products to our customers. While this affects insurers across the industry, it could adversely impact our competitive position and ourresults of operations in the future. We continue to evaluate product modifications, pricing structure and alternative means of managing risks, capital andstatutory reserves and we expect the discontinued use of captive reinsurance on new reserve financing transactions would not have a material impact on ourfuture consolidated financial results. See Note 6 of the Notes to the Consolidated Financial Statements for further information on our reinsurance activities.

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SummaryoftheCompany’sPrimarySourcesandUsesofLiquidityandCapital

Our primary sources and uses of liquidity and capital are summarized as follows:

Years Ended December 31,

2018 2017 2016 (In millions)Sources:

Operating activities, net $ 11,738 $ 12,283 $ 14,774Net change in policyholder account balances 4,266 6,131 4,925Net change in payables for collateral under securities loaned and other transactions — 903 —Cash received for other transactions with tenors greater than three months 200 — —Long-term debt issued 24 3,657 —Financing element on certain derivative instruments and other derivative related transactions, net 144 — —Preferred stock issued, net of issuance costs 1,274 — —Other, net — 118 139Effect of change in foreign currency exchange rates on cash and cash equivalents — 323 —Total sources 17,646 23,415 19,838

Uses: Investing activities, net 5,634 16,876 5,850Net change in payables for collateral under securities loaned and other transactions 821 — 3,636Long-term debt repaid 1,871 1,073 1,279Collateral financing arrangements repaid 61 2,951 68Distribution of Brighthouse — 2,793 —Financing element on certain derivative instruments and other derivative related transactions, net — 151 1,367Treasury stock acquired in connection with share repurchases 3,992 2,927 372Dividends on preferred stock 141 103 103Dividends on common stock 1,678 1,717 1,736Other, net 145 — —Effect of change in foreign currency exchange rates on cash and cash equivalents 183 — 302Total uses 14,526 28,591 14,713

Net increase (decrease) in cash and cash equivalents $ 3,120 $ (5,176) $ 5,125

Cash Flows from Operations

The principal cash inflows from our insurance activities come from insurance premiums, net investment income, annuity considerations and deposit funds.The principal cash outflows are the result of various life insurance, property and casualty, annuity and pension products, operating expenses and income tax, aswell as interest expense. A primary liquidity concern with respect to these cash flows is the risk of early contractholder and policyholder withdrawal. The cashflows from discontinued operations are not separately classified, but generally arise from the same activities described above.

Cash Flows from Investments

The principal cash inflows from our investment activities come from repayments of principal, proceeds from maturities and sales of investments andsettlements of freestanding derivatives. The principal cash outflows relate to purchases of investments, issuances of policy loans and settlements offreestanding derivatives. Additional cash outflows relate to purchases of businesses. We typically have a net cash outflow from investing activities becausecash inflows from insurance operations are reinvested in accordance with our ALM discipline to fund insurance liabilities. We closely monitor and managethese risks through our comprehensive investment risk management process. The primary liquidity concerns with respect to these cash flows are the risk ofdefault by debtors and market disruption. The cash flows from discontinued operations are not separately classified, but generally arise from the sameactivities described above.

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Cash Flows from Financing

The principal cash inflows from our financing activities come from issuances of debt and other securities, deposits of funds associated with policyholderaccount balances and lending of securities. The principal cash outflows come from repayments of debt and collateral financing arrangements, payments ofdividends on and repurchases of MetLife, Inc.’s securities, withdrawals associated with policyholder account balances, cash disposed of in the distribution ofBrighthouse and the return of securities on loan. The primary liquidity concerns with respect to these cash flows are market disruption and the risk of earlycontractholder and policyholder withdrawal. The cash flows from discontinued operations are not separately classified, but generally arise from the sameactivities described above.

LiquidityandCapitalSources

In addition to the general description of liquidity and capital sources in “— Summary of the Company’s Primary Sources and Uses of Liquidity andCapital,” the Company’s primary sources of liquidity and capital are set forth below. See Note 3 o f the Notes to the Consolidated Financial Statements forinformation regarding financing transactions related to the Separation.

Global Funding Sources

Liquidity is provided by a variety of global funding sources, including funding agreements, credit and committed facilities and commercial paper. Capitalis provided by a variety of global funding sources, including short-term and long-term debt, the collateral financing arrangement, junior subordinated debtsecurities, preferred securities, equity securities and equity-linked securities. MetLife, Inc. maintains a shelf registration statement with the SEC that permitsthe issuance of public debt, equity and hybrid securities. As a “Well-Known Seasoned Issuer” under SEC rules, MetLife, Inc.’s shelf registration statementprovides for automatic effectiveness upon filing and has no stated issuance capacity. The diversity of our global funding sources enhances our fundingflexibility, limits dependence on any one market or source of funds and generally lowers the cost of funds. Our primary global funding sources include:

Preferred Stock

In June 2018, MetLife, Inc. issued 32,200 shares of 5.625% Non-Cumulative Preferred Stock, Series E (the “Series E preferred stock”) with a $0.01 parvalue per share and a liquidation preference of $25,000 per share, for aggregate net proceeds of $780 million.

In March 2018, MetLife, Inc. issued 500,000 shares of 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D (the “Series Dpreferred stock”) with a $0.01 par value per share and a liquidation preference of $1,000 per share, for aggregate net proceeds of $494 million.

See Note 15 of the Notes to the Consolidated Financial Statements .

Common Stock

See Note 15 of the Notes to the Consolidated Financial Statements .

Commercial Paper, Reported in Short-term Debt

MetLife, Inc. and MetLife Funding each have a commercial paper program that is supported by our unsecured revolving credit facility (see “— Creditand Committed Facilities”). MetLife Funding raises cash from its commercial paper program and uses the proceeds to extend loans through MetLife CreditCorp., another subsidiary of MLIC, to affiliates in order to enhance the financial flexibility and liquidity of these companies.

Federal Home Loan Bank Funding Agreements, Reported in Policyholder Account Balances

Certain of our U.S. insurance subsidiaries are members of a regional FHLB. During the years ended December 31, 2018 , 2017 and 2016 , we issued$27.3 billion, $22.4 billion and $17.0 billion, respectively, and repaid $27.5 billion, $22.4 billion and $15.2 billion, respectively, under funding agreementswith certain regional FHLBs. At December 31, 2018 and 2017 , total obligations outstanding under these funding agreements were $15.1 billion and $15.3billion, respectively. See Note 4 of the Notes to the Consolidated Financial Statements.

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Federal Home Loan Bank Advance Agreements, Reported in Payables for Collateral Under Securities Loaned and Other Transactions

During the years ended December 31, 2018 and 2017 , we issued $3.1 billion and $301 million, respectively, and repaid $2.6 billion and $1 million,respectively, under advance agreements with a regional FHLB. At December 31, 2018 and 2017 , total obligations outstanding under these advanceagreements were $800 million and $300 million, respectively. There were no such transactions during the year ended December 31, 2016. See Note 8 of theNotes to the Consolidated Financial Statements.

Special Purpose Entity Funding Agreements, Reported in Policyholder Account Balances

We issue fixed and floating rate funding agreements which are denominated in either U.S. dollars or foreign currencies, to certain special purposeentities (“SPEs”) that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such fundingagreements. During the years ended December 31, 2018 , 2017 and 2016 , we issued $41.8 billion, $42.7 billion and $39.7 billion, respectively, and repaid$43.7 billion, $41.4 billion and $38.5 billion, respectively, under such funding agreements. At December 31, 2018 and 2017 , total obligations outstandingunder these funding agreements were $32.3 billion and $34.2 billion, respectively. See Note 4 of the Notes to the Consolidated Financial Statements.

Federal Agricultural Mortgage Corporation Funding Agreements, Reported in Policyholder Account Balances

We have issued funding agreements to a subsidiary of Farmer Mac, as well as to certain SPEs that have issued debt securities for which payment ofinterest and principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by FarmerMac. The obligations under all such funding agreements are secured by a pledge of certain eligible agricultural mortgage loans. During the years endedDecember 31, 2018 , 2017 and 2016 , we issued $900 million, $1.0 billion and $1.2 billion, respectively, and repaid $900 million, $1.0 billion and$1.2 billion, respectively, under such funding agreements. At both December 31, 2018 and 2017 , total obligations outstanding under these fundingagreements were $2.6 billion. See Note 4 of the Notes to the Consolidated Financial Statements.

Credit and Committed Facilities

At December 31, 2018 , we maintained a $3.0 billion unsecured revolving credit facility and certain committed facilities aggregating $3.3 billion , ofwhich MetLife, Inc. is a party and/or guarantor. When drawn upon, these facilities bear interest at varying rates in accordance with the respectiveagreements. See Note 12 of the Notes to the Consolidated Financial Statements.

The unsecured revolving credit facility is used for general corporate purposes, to support the borrowers’ commercial paper programs and for theissuance of letters of credit. At December 31, 2018 , we had outstanding $446 million in letters of credit and no drawdowns against this facility. Remainingavailability was $2.6 billion at December 31, 2018 .

The committed facilities are used as collateral for certain of our affiliated reinsurance liabilities. At December 31, 2018 , we had outstanding $2.8billion in letters of credit and no drawdowns against these facilities. Remaining availability was $491 million at December 31, 2018 . As of December 31,2018 , Brighthouse was a beneficiary of $2.4 billion of letters of credit issued under these committed facilities. See Note 3 of the Notes to the ConsolidatedFinancial Statements.

We have no reason to believe that our lending counterparties will be unable to fulfill their respective contractual obligations under these facilities. Ascommitments under our credit and committed facilities may expire unused, these amounts do not necessarily reflect our actual future cash fundingrequirements.

Affiliated Preferred Units Issuances

In June 2017, Brighthouse Holdings, LLC issued 50,000 units of 6.50% fixed rate cumulative preferred units to MetLife, Inc. and, in turn, MetLife, Inc.sold the preferred units to third-party investors for net proceeds of $49 million . See Note 3 of the Notes to the Consolidated Financial Statements.

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Outstanding Debt Under Global Funding Sources

The following table summarizes our outstanding debt excluding long-term debt relating to CSEs at:

December 31,

2018 2017 (In millions)Short-term debt (1) $ 268 $ 477Long-term debt (2) $ 12,824 $ 15,680Collateral financing arrangement $ 1,060 $ 1,121Junior subordinated debt securities (3) $ 3,147 $ 3,144__________________

(1) Includes $168 million and $377 million of debt that is non-recourse to MetLife, Inc. and MLIC, subject to customary exceptions, at December 31, 2018 and2017 , respectively. Certain subsidiaries have pledged assets to secure this debt.

(2) Includes $422 million and $523 million of debt that is non-recourse to MetLife, Inc. and MLIC, subject to customary exceptions, at December 31, 2018 and2017 , respectively. Certain investment subsidiaries have pledged assets to secure this debt.

(3) For information regarding the junior subordinated debt securities, see Note 14 of the Notes to the Consolidated Financial Statements and Note 5 of the Notesto the MetLife, Inc. (Parent Company Only) Condensed Financial Information in Schedule II.

Debt and Facility Covenants

Certain of our debt instruments and committed facilities, as well as our unsecured revolving credit facility, contain various administrative, reporting, legaland financial covenants. We believe we were in compliance with all applicable financial covenants at December 31, 2018 .

Dispositions

Cash proceeds from dispositions during the years ended December 31, 2018 , 2017 and 2016 were $0, $0, and $291 million, respectively. See Note 3 ofthe Notes to the Consolidated Financial Statements.

LiquidityandCapitalUses

In addition to the general description of liquidity and capital uses in “— Summary of the Company’s Primary Sources and Uses of Liquidity and Capital”and “— Contractual Obligations,” the Company’s primary uses of liquidity and capital are set forth below.

Common Stock Repurchases

See Note 15 of the Notes to the Consolidated Financial Statements for information relating to authorizations by the Board of Directors to repurchaseMetLife, Inc. common stock, amounts of common stock repurchased pursuant to such authorizations during the years ended December 31, 2018 , 2017 and2016 , and the amount remaining under such authorizations at December 31, 2018 . See Note 22 of the Notes to the Consolidated Financial Statements forinformation regarding shares of common stock repurchased subsequent to December 31, 2018 .

Common stock repurchases are subject to the discretion of our Board of Directors and will depend upon our capital position, liquidity, financial strengthand credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to management’s assessment of the stock’sunderlying value, applicable regulatory approvals, and other legal and accounting factors. Restrictions on the payment of dividends that may arise under so-called “Dividend Stopper” provisions would also restrict MetLife, Inc.’s ability to repurchase common stock. See “— Dividends” for information about theserestrictions. See also “Risk Factors — Capital Risks — Legal and Regulatory Restrictions May Prevent Us from Paying Dividends and Repurchasing OurStock at the Level We Wish.”

Dividends

During the years ended December 31, 2018 , 2017 and 2016 , MetLife, Inc. paid dividends on its preferred stock of $141 million , $103 million and $103million , respectively. During each of the years ended December 31, 2018 , 2017 and 2016 , MetLife, Inc. paid $1.7 billion of dividends on its common stock.See Note 15 of the Notes to the Consolidated Financial Statements for information regarding the calculation and timing of these dividend payments.

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Dividends are paid quarterly on MetLife, Inc.’s Floating Rate Non-Cumulative Preferred Stock, Series A. Dividends are paid semi-annually on MetLife,Inc.’s 5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C, until June 15, 2020 and, thereafter, will be paid quarterly. Dividends are paidsemi-annually on MetLife, Inc.’s 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D, in September and March until March 15, 2028and, thereafter, will be paid quarterly. Dividends are paid quarterly on MetLife, Inc.’s 5.625% Non-Cumulative Preferred Stock, Series E.

The declaration and payment of common stock dividends are subject to the discretion of our Board of Directors, and will depend on MetLife, Inc.’sfinancial condition, results of operations, cash requirements, future prospects, regulatory restrictions on the payment of dividends by MetLife, Inc.’s insurancesubsidiaries and other factors deemed relevant by the Board. See Note 22 of the Notes to the Consolidated Financial Statements for information regarding acommon stock dividend declared subsequent to December 31, 2018 .

“Dividend Stopper” Provisions in MetLife’s Preferred Stock and Junior Subordinated Debentures

MetLife, Inc.’s preferred stock and junior subordinated debentures contain “dividend stopper” provisions under which MetLife, Inc. may not paydividends on instruments junior to those instruments if payments have not been made on those instruments. Moreover, MetLife, Inc.’s Series A preferredstock and its junior subordinated debentures contain provisions that would limit the payment of dividends or interest on those instruments if MetLife, Inc.fails to meet certain tests (“Trigger Events”), to an amount not greater than the net proceeds from sales of common stock and other specified instrumentsduring a period preceding the dividend declaration date or the interest payment date, as applicable. If such proceeds were under the circumstancesinsufficient to make such payments on those instruments, the dividend stopper provisions affecting common stock (and preferred stock, as applicable) wouldcome into effect.

A “Trigger Event” would occur if:

• the RBC ratio of MetLife’s largest U.S. insurance subsidiaries in the aggregate (as defined in the applicable instrument) were to be less than 175% of thecompany action level based on the subsidiaries’ prior year annual financial statements filed (generally around March 1) with state insurancecommissioners; or

• at the end of a quarter (“Final Quarter End Test Date”), consolidated GAAP net income for the four-quarter period ending two quarters before suchquarter-end (the “Preliminary Quarter End Test Date”) is zero or a negative amount and the consolidated GAAP stockholders’ equity, minus AOCI (the“adjusted stockholders’ equity amount”), as of the Final Quarter End Test Date and the Preliminary Quarter End Test Date, declined by 10% or more from(A) its level 10 quarters before the Final Quarter End Test Date (the “Benchmark Quarter End Test Date”), for Benchmark Quarter End Test Dates afterAugust 4, 2017 (the date of the Separation), or (B) $49,282,000,000, the consolidated GAAP stockholders’ equity, minus AOCI as of June 30, 2017 asreported on a pro forma basis reflecting the Separation in MetLife’s Form 8-K filed with the SEC on August 9, 2017, for Benchmark Quarter End TestDates prior to August 4, 2017.

Once a Trigger Event occurs for a Final Quarter End Test Date, the suspension of payments of dividends and interest (in the absence of sufficient netproceeds from the issuance of certain securities during specified periods) would continue until there is no Trigger Event at a subsequent Final Quarter EndTest Date, and, if the test in the second paragraph above caused the Trigger Event, the adjusted stockholders’ equity amount is no longer 10% or more belowits level at the Benchmark Quarter End Test Date that is associated with the Trigger Event. In the case of successive Trigger Events, the suspension wouldcontinue until MetLife satisfies these conditions for each of the Trigger Events.

The junior subordinated debentures further provide that MetLife, Inc. may, at its option and provided that certain conditions are met, elect to deferpayment of interest. See Note 14 of the Notes to the Consolidated Financial Statements. Any such elective deferral would trigger the dividend stopperprovisions.

Further, MetLife, Inc. is a party to certain replacement capital covenants which limit its ability to eliminate these restrictions through the repayment,redemption or purchase of the junior subordinated debentures by requiring MetLife, Inc., with some limitations, to receive cash proceeds during a specifiedperiod from the sale of specified replacement securities prior to any repayment, redemption or purchase. See Note 14 of the Notes to the ConsolidatedFinancial Statements for a description of such covenants.

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Debt Repayments

See Notes 12 and 13 of the Notes to the Consolidated Financial Statements for further information on long-term and short-term debt and the collateralfinancing arrangement, respectively, including:

• During 2018, 2017 and 2016, following regulatory approval, MetLife Reinsurance Company of Charleston (“MRC”), a wholly-owned subsidiary ofMetLife, Inc., repurchased and canceled $61 million, $153 million and $68 million, respectively, in aggregate principal amount of its surplus notes, whichwere reported in collateral financing arrangement on the consolidated balance sheets;

• In August 2018, MetLife, Inc. repaid at maturity the remaining $533 million of its 6.817% senior notes;

• In December 2017, MetLife, Inc. repaid at maturity its $500 million 1.756% senior notes;

• In December 2017, MetLife, Inc. repaid at maturity its $500 million 1.903% senior notes; and

• In June 2016, MetLife, Inc. repaid at maturity its $1.3 billion 6.750% senior notes.

Debt Repurchases, Redemptions and Exchanges

We may from time to time seek to retire or purchase our outstanding debt through cash purchases, redemptions and/or exchanges for other securities, inopen market purchases, privately negotiated transactions or otherwise. Any such repurchases, redemptions, or exchanges will be dependent upon severalfactors, including our liquidity requirements, contractual restrictions, general market conditions, and applicable regulatory, legal and accounting factors.Whether or not to repurchase or redeem any debt and the size and timing of any such repurchases or redemptions will be determined at our discretion.

In June 2018, MetLife, Inc. sold FVO Brighthouse Common Stock in exchange for $944 million in aggregate principal amount of its senior notes. InDecember, August and June 2018, MetLife, Inc. purchased for cash $500 million, $566 million and $160 million, respectively, in aggregate principal amountof its senior notes. See Note 12 of the Notes to the Consolidated Financial Statements for further information on long-term and short-term debt.

Support Agreements

MetLife, Inc. and several of its subsidiaries (each, an “Obligor”) are parties to various capital support commitments and guarantees with subsidiaries.Under these arrangements, each Obligor has agreed to cause the applicable entity to meet specified capital and surplus levels or has guaranteed certaincontractual obligations. We anticipate that in the event these arrangements place demands upon us, there will be sufficient liquidity and capital to enable us tomeet such demands. See “— MetLife, Inc. — Liquidity and Capital Uses — Support Agreements.”

Insurance Liabilities

Liabilities arising from our insurance activities primarily relate to benefit payments under various life insurance, property and casualty, annuity and grouppension products, as well as payments for policy surrenders, withdrawals and loans. For annuity or deposit type products, surrender or lapse behavior differssomewhat by segment. In the MetLife Holdings segment, which includes individual annuities, lapses and surrenders tend to occur in the normal course ofbusiness. During the years ended December 31, 2018 and 2017 , general account surrenders and withdrawals from annuity products were $1.8 billion and$1.6 billion, respectively. In the RIS business within the U.S. segment, which includes pension risk transfers, bank-owned life insurance and other fixedannuity contracts, as well as funding agreements and other capital market products, most of the products offered have fixed maturities or fairly predictablesurrenders or withdrawals. With regard to the RIS business products that provide customers with limited rights to accelerate payments, at December 31, 2018 ,there were funding agreements totaling $148 million that could be put back to the Company.

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Pledged Collateral

We pledge collateral to, and have collateral pledged to us by, counterparties in connection with our derivatives. At both December 31, 2018 and 2017 , wehad received pledged cash collateral from counterparties of $ 5.0 billion . At December 31, 2018 and 2017 , we had pledged cash collateral to counterparties of$283 million and $456 million , respectively. With respect to OTC-bilateral derivatives in a net liability position and have credit contingent provisions, a one-notch downgrade in the Company’s credit or financial strength rating, as applicable, would have required $10 million of additional collateral be provided toour counterparties as of December 31, 2018 . See Note 9 of the Notes to the Consolidated Financial Statements for additional information about collateralpledged to us, collateral we pledge and derivatives subject to credit contingent provisions.

We pledge collateral and have had collateral pledged to us, and may be required from time to time to pledge additional collateral or be entitled to haveadditional collateral pledged to us, in connection with the collateral financing arrangement related to the reinsurance of closed block liabilities. See Note 13 ofthe Notes to the Consolidated Financial Statements.

We pledge collateral from time to time in connection with funding agreements and advance agreements. See Note 4 of the Notes to the ConsolidatedFinancial Statements.

Securities Lending

We participate in a securities lending program whereby securities are loaned to third parties, primarily brokerage firms and commercial banks. We obtaincollateral, usually cash, from the borrower, which must be returned to the borrower when the loaned securities are returned to us. Under our securities lendingprogram, we were liable for cash collateral under our control of $18.0 billion and $19.4 billion at December 31, 2018 and 2017 , respectively. Of theseamounts, $2.7 billion and $3.8 billion at December 31, 2018 and 2017 , respectively, were on open, meaning that the related loaned security could be returnedto us on the next business day requiring the immediate return of cash collateral we hold. The estimated fair value of the securities on loan related to the cashcollateral on open at December 31, 2018 was $2.7 billion , all of which were U.S. government and agency securities which, if put to us, could be immediatelysold to satisfy the cash requirement. See Note 8 of the Notes to the Consolidated Financial Statements.

Repurchase Agreements

We participate in short-term repurchase agreements whereby securities are loaned to unaffiliated financial institutions. We obtain collateral, usually cash,from the borrower, which must be returned to the borrower when the loaned securities are returned to us. Under these repurchase agreements, we were liablefor cash collateral under our control of $1.1 billion at both December 31, 2018 and 2017 . The estimated fair value of the securities on loan at December 31,2018 was $1.1 billion which were primarily U.S. government and agency securities which, if put to us, could be immediately sold to satisfy the cashrequirement. See Note 8 of the Notes to the Consolidated Financial Statements.

Litigation

We establish liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can bereasonably estimated. For material matters where a loss is believed to be reasonably possible but not probable, no accrual is made but we disclose the nature ofthe contingency and an aggregate estimate of the reasonably possible range of loss in excess of amounts accrued, when such an estimate can be made. It is notpossible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to herein, very large and/orindeterminate amounts, including punitive and treble damages, are sought. Given the large and/or indeterminate amounts sought in certain of these matters andthe inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material adverse effect onour consolidated net income or cash flows in particular quarterly or annual periods. See Note 20 of the Notes to the Consolidated Financial Statements.

Acquisitions

Cash outflows for acquisitions and investments in strategic partnerships during the years ended December 31, 2018 , 2017 and 2016 were $0, $211 millionand $0, respectively.

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ContractualObligations

The following table summarizes our major contractual obligations at December 31, 2018 :

Total One Year

or Less

More thanOne Year toThree Years

More thanThree Yearsto Five Years

More thanFive Years

(In millions)Insurance liabilities $ 318,082 $ 22,246 $ 17,927 $ 17,298 $ 260,611Policyholder account balances 234,958 32,036 22,784 16,733 163,405Payables for collateral under securities loaned and other

transactions 24,794 24,794 — — —Debt 31,950 1,247 2,772 3,602 24,329Investment commitments 11,734 11,344 330 60 —Operating leases 2,126 292 542 433 859Other 19,059 18,707 — — 352

Total $ 642,703 $ 110,666 $ 44,355 $ 38,126 $ 449,556

Insurance Liabilities

Insurance liabilities include future policy benefits, other policy-related balances, policyholder dividends payable and the policyholder dividend obligation,which are all reported on the consolidated balance sheet and are more fully described in Notes 1 and 4 of the Notes to the Consolidated Financial Statements.The amounts presented reflect future estimated cash payments and (i) are based on mortality, morbidity, lapse and other assumptions comparable with ourexperience and expectations of future payment patterns; and (ii) consider future premium receipts on current policies in-force. All estimated cash paymentspresented are undiscounted as to interest, net of estimated future premiums on in-force policies and gross of any reinsurance recoverable. Payment of amountsrelated to policyholder dividends left on deposit are projected based on assumptions of policyholder withdrawal activity. Because the exact timing and amountof the ultimate policyholder dividend obligation is subject to significant uncertainty and the amount of the policyholder dividend obligation is based upon along-term projection of the performance of the closed block, we have reflected the obligation at the amount of the liability, if any, presented on theconsolidated balance sheet in the more than five years category. Additionally, the more than five years category includes estimated payments due for periodsextending for more than 100 years.

The sum of the estimated cash flows of $318.1 billion exceeds the liability amounts of $204.4 billion included on the consolidated balance sheetprincipally due to (i) the time value of money, which accounts for a substantial portion of the difference; (ii) differences in assumptions, most significantlymortality, between the date the liabilities were initially established and the current date; and (iii) liabilities related to accounting conventions, or which are notcontractually due, which are excluded.

Actual cash payments may differ significantly from the liabilities as presented on the consolidated balance sheet and the estimated cash payments aspresented due to differences between actual experience and the assumptions used in the establishment of these liabilities and the estimation of these cashpayments.

For the majority of our insurance operations, estimated contractual obligations for future policy benefits and policyholder account balances, as presented,are derived from the annual asset adequacy analysis used to develop actuarial opinions of statutory reserve adequacy for state regulatory purposes. These cashflows are materially representative of the cash flows under GAAP. See “— Policyholder Account Balances.”

Policyholder Account Balances

See Notes 1 and 4 of the Notes to the Consolidated Financial Statements for a description of the components of policyholder account balances. See “—Insurance Liabilities” regarding the source and uncertainties associated with the estimation of the contractual obligations related to future policy benefits andpolicyholder account balances.

Amounts presented represent the estimated cash payments undiscounted as to interest and including assumptions related to the receipt of future premiumsand deposits; withdrawals, including unscheduled or partial withdrawals; policy lapses; surrender charges; annuitization; mortality; future interest credited;policy loans and other contingent events as appropriate for the respective product type. Such estimated cash payments are also presented net of estimatedfuture premiums on policies currently in-force and gross of any reinsurance recoverable. For obligations denominated in foreign currencies, cash paymentshave been estimated using current spot foreign currency rates.

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The sum of the estimated cash flows of $235.0 billion exceeds the liability amount of $183.7 billion included on the consolidated balance sheet principallydue to (i) the time value of money, which accounts for a substantial portion of the difference; (ii) differences in assumptions, between the date the liabilitieswere initially established and the current date; and (iii) liabilities related to accounting conventions, or which are not contractually due, which are excluded.

Payables for Collateral Under Securities Loaned and Other Transactions

We have accepted cash collateral in connection with securities lending and derivatives. As the securities lending transactions expire within the next yearand the timing of the return of the derivatives collateral is uncertain, the return of the collateral has been included in the one year or less category in the tableabove. We also held non-cash collateral, which is not reflected as a liability on the consolidated balance sheet, of $1.4 billion at December 31, 2018 .

Debt

Amounts presented for debt include short-term debt, long-term debt, the collateral financing arrangement and junior subordinated debt securities, the totalof which differs from the total of the corresponding amounts presented on the consolidated balance sheet as the amounts presented herein (i) do not includepremiums or discounts upon issuance or purchase accounting fair value adjustments; (ii) include future interest on such obligations for the period fromJanuary 1, 2019 through maturity; and (iii) do not include long-term debt relating to CSEs at December 31, 2018 as such debt does not represent ourcontractual obligation. Future interest on variable rate debt was computed using prevailing rates at December 31, 2018 and, as such, does not consider theimpact of future rate movements. Future interest on fixed rate debt was computed using the stated rate on the obligations for the period from January 1, 2019through maturity, except with respect to junior subordinated debt which was computed using the stated rates through the scheduled redemption dates as it isour expectation that such obligations will be redeemed as scheduled. Inclusion of interest payments on junior subordinated debt securities through the finalmaturity dates would increase the contractual obligation by $7.7 billion. Pursuant to the collateral financing arrangement, MetLife, Inc. may be required todeliver cash or pledge collateral to the unaffiliated financial institution. See Note 13 of the Notes to the Consolidated Financial Statements.

Investment Commitments

To enhance the return on our investment portfolio, we commit to lend funds under mortgage loans, bank credit facilities, bridge loans and privatecorporate bond investments and we commit to fund partnership investments. In the table above, the timing of the funding of mortgage loans and privatecorporate bond investments is based on the expiration dates of the corresponding commitments. As it relates to commitments to fund partnerships and bankcredit facilities, we anticipate that these amounts could be invested any time over the next five years; however, as the timing of the fulfillment of the obligationcannot be predicted, such obligations are generally presented in the one year or less category. Commitments to fund bridge loans are short-term obligationsand, as a result, are presented in the one year or less category. See Note 20 of the Notes to the Consolidated Financial Statements and “— Off-Balance SheetArrangements.”

Operating Leases

As a lessee, we have various operating leases, primarily for office space. Contractual provisions exist that could increase or accelerate those leaseobligations presented, including various leases with early buyouts and/or escalation clauses. However, the impact of any such transactions would not bematerial to our financial position or results of operations. See Note 20 of the Notes to the Consolidated Financial Statements.

Other

Other obligations presented are principally comprised of amounts due under reinsurance agreements, payables related to securities purchased but not yetsettled, securities sold short, accrued interest on debt obligations, estimated fair value of derivative obligations, deferred compensation arrangements, guarantyliabilities, and accruals and accounts payable due under contractual obligations, which are all reported in other liabilities on the consolidated balance sheet. Ifthe timing of any of these other obligations is sufficiently uncertain, the amounts are included within the one year or less category. Items reported in otherliabilities on the consolidated balance sheet that were excluded from the table represent accounting conventions or are not liabilities due under contractualobligations. Unrecognized tax benefits and related accrued interest totaling $1.3 billion were excluded as the timing of payment could not be reliablydetermined at December 31, 2018 .

Separate account liabilities are excluded as they are fully funded by cash flows from the corresponding separate account assets and are set equal to theestimated fair value of separate account assets.

We also enter into agreements to purchase goods and services in the normal course of business; however, such amounts are excluded as these purchaseobligations were not material to our consolidated results of operations or financial position at December 31, 2018 .

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Additionally, we have agreements in place for services we conduct, generally at cost, between subsidiaries relating to insurance, reinsurance, loans andcapitalization. Intercompany transactions have been eliminated in consolidation. Intercompany transactions among insurance subsidiaries and affiliates havebeen approved by the appropriate insurance regulators as required.

MetLife,Inc.

LiquidityandCapitalManagement

Liquidity and capital are managed to preserve stable, reliable and cost-effective sources of cash to meet all current and future financial obligations and areprovided by a variety of sources, including a portfolio of liquid assets, a diversified mix of short- and long-term funding sources from the wholesale financialmarkets and the ability to borrow through credit and committed facilities. Liquidity is monitored through the use of internal liquidity risk metrics, including thecomposition and level of the liquid asset portfolio, timing differences in short-term cash flow obligations, access to the financial markets for capital and debttransactions and exposure to contingent draws on MetLife, Inc.’s liquidity. MetLife, Inc. is an active participant in the global financial markets through which itobtains a significant amount of funding. These markets, which serve as cost-effective sources of funds, are critical components of MetLife, Inc.’s liquidity andcapital management. Decisions to access these markets are based upon relative costs, prospective views of balance sheet growth and a targeted liquidity profileand capital structure. A disruption in the financial markets could limit MetLife, Inc.’s access to liquidity.

MetLife, Inc.’s ability to maintain regular access to competitively priced wholesale funds is fostered by its current credit ratings from the major credit ratingagencies. We view our capital ratios, credit quality, stable and diverse earnings streams, diversity of liquidity sources and our liquidity monitoring procedures ascritical to retaining such credit ratings. See “— The Company — Capital — Rating Agencies.”

Liquidity

For a summary of MetLife, Inc.’s liquidity, see “— The Company — Liquidity.”

Capital

For a summary of MetLife, Inc.’s capital, see “— The Company — Capital.” See also “— The Company — Liquidity and Capital Uses — Common StockRepurchases” for information regarding MetLife, Inc.’s common stock repurchases.

LiquidAssets

At December 31, 2018 and 2017 , MetLife, Inc. and other MetLife holding companies had $3.0 billion and $5.7 billion, respectively, in liquid assets. Ofthese amounts, $2.4 billion and $4.1 billion were held by MetLife, Inc. and $607 million and $1.6 billion were held by other MetLife holding companies atDecember 31, 2018 and 2017 , respectively. Liquid assets include cash and cash equivalents, short-term investments and publicly-traded securities, excludingassets that are pledged or otherwise committed. Assets pledged or otherwise committed include amounts received in connection with derivatives and a collateralfinancing arrangement.

Liquid assets held in non-U.S. holding companies are generated in part through dividends from non-U.S. insurance operations. Such dividends are subject tolocal insurance regulatory requirements, as discussed in “— Liquidity and Capital Sources — Dividends from Subsidiaries.” The cumulative earnings of certainactive non-U.S. operations have historically been reinvested indefinitely in such non-U.S. operations. Following a post-Separation review of our capital needs inthe third quarter of 2017, we disclosed our intent to repatriate approximately $3.0 billion of pre-2017 earnings. The Company repatriated $2.6 billion in thefourth quarter of 2017 and the remaining $400 million in the second quarter of 2018. As a result of U.S. Tax Reform, we expect to repatriate future foreignearnings back to the U.S. with minimal or no additional U.S. tax. See Note 18 of the Notes to the Consolidated Financial Statements and “ — Risk Factors —Regulatory and Legal Risks — Changes in Tax Laws or Interpretations of Such Laws Could Reduce Our Earnings and Materially Impact Our Operations byIncreasing Our Corporate Taxes and Making Some of Our Products Less Attractive to Consumers.”

See “— Executive Summary — Consolidated Company Outlook,” for the targeted level of liquid assets at the holding companies.

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MetLife, Inc. and Other MetLife Holding Companies Sources and Uses of Liquid Assets and Sources and Uses of Liquid Assets included in Free Cash Flow

MetLife, Inc.’s sources and uses of liquid assets, as well as sources and uses of liquid assets included in free cash flow are summarized as follows.

Year Ended December 31, 2018 Year Ended December 31, 2017 Year Ended December 31, 2016

Sources and Uses ofLiquid Assets

Sources and Uses ofLiquid Assets Included

in Free Cash Flow Sources and Uses ofLiquid Assets

Sources and Uses ofLiquid Assets Included

in Free Cash Flow Sources and Uses ofLiquid Assets

Sources and Uses ofLiquid Assets Included

in Free Cash Flow

(In millions)

MetLife, Inc. (Parent Company Only)

Sources:

Dividends and returns of capital from subsidiaries (1) $ 7,454 $ 7,454 $ 7,404 $ 7,404 $ 4,550 $ 4,550

Long-term debt issued (2) — — — — — —Repayments on and (issuances of) loans to subsidiaries and related interest,

net (3) — — — — — —

Preferred stock issued 1,274 — — — — —

Other, net (4) — — 107 4 120 (210)

Total sources 8,728 7,454 7,511 7,408 4,670 4,340

Uses:

Capital contributions to subsidiaries (5) 767 767 339 124 1,733 1,733

Long-term debt repaid — unaffiliated 1,759 — 1,000 — 1,250 —

Interest paid on debt and financing arrangements — unaffiliated 964 964 980 980 983 983

Dividends on common stock 1,678 — 1,717 — 1,736 —

Treasury stock acquired in connection with share repurchases 3,992 — 2,927 — 372 —

Dividends on preferred stock 141 141 103 103 103 103Issuances of and (repayments on) loans to subsidiaries and related interest,

net (3) 63 63 33 33 99 99

Other, net (4) 1,029 1,083 — — — —

Total uses 10,393 3,018 7,099 1,240 6,276 2,918

Net increase (decrease) in liquid assets, MetLife, Inc. (Parent Company Only) (1,665) 412 (1,606)

Liquid assets, beginning of year 4,095 3,683 5,289

Liquid assets, end of year $ 2,430 $ 4,095 $ 3,683

Free Cash Flow, MetLife, Inc. (Parent Company Only) 4,436 6,168 1,422Net cash provided by operating activities, MetLife, Inc. (Parent Company

Only) $ 5,494 $ 6,462 $ 3,747

Other MetLife Holding Companies

Sources:

Dividends and returns of capital from subsidiaries $ 2,836 $ 2,836 $ 2,125 $ 2,125 $ 1,485 $ 1,485

Capital contributions from MetLife, Inc. — — — — — —

Total sources 2,836 2,836 2,125 2,125 1,485 1,485

Uses:

Capital contributions to subsidiaries 57 57 12 12 53 53Repayments on and (issuance of) loans to subsidiaries and affiliates and

related interest, net 6 6 6 6 307 307

Dividends and returns of capital to MetLife, Inc. 3,200 3,200 2,200 2,200 — —

Other, net 603 603 408 408 123 123

Total uses 3,866 3,866 2,626 2,626 483 483

Net increase (decrease) in liquid assets, Other MetLife Holding Companies (1,030) (501) 1,002

Liquid assets, beginning of year 1,643 2,144 1,142

Liquid assets, end of year $ 613 $ 1,643 $ 2,144

Free Cash Flow, Other MetLife Holding Companies (1,030) (501) 1,002

Net increase (decrease) in liquid assets, All Holding Companies $ (2,695) $ (89) $ (604)

Free Cash Flow, All Holding Companies (6) (7) $ 3,406 $ 5,667 $ 2,424

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(1) Dividends and returns of capital to MetLife, Inc. included $4.3 billion, $5.2 billion and $4.6 billion from operating subsidiaries and $3.2 billion, $2.2 billionand $0 from other MetLife holding companies during the years ended December 31, 2018 , 2017 and 2016 , respectively. Included in dividends and returnsof capital to MetLife, Inc. are the following which increased MetLife, Inc. liquid assets and free cash flow: dividends from Brighthouse subsidiaries of $0,$1.8 billion and $556 million, and returns of capital from Brighthouse subsidiaries of $0, $590 million and $0, during the years ended December 31, 2018 ,2017 and 2016 , respectively. Also, dividends and returns of capital to MetLife, Inc. includes $49 million from the June 2017 issuance by BrighthouseHoldings, LLC of 50,000 units of 6.50% fixed rate cumulative preferred units to MetLife, Inc. which MetLife, Inc. sold to third-party investors.

(2) Included in free cash flow is the portion of long-term debt issued that represents incremental debt to be at or below target leverage ratios.

(3) See MetLife, Inc. (Parent Company Only) Condensed Statements of Cash Flows included in Schedule II of the Financial Statement Schedules for the sourceof liquid assets from receipts on loans to subsidiaries (excluding interest) and for the use of liquid assets for the issuances of loans to subsidiaries (excludinginterest).

(4) Other, net includes ($877) million, $860 million and $433 million of net receipts (payments) by MetLife, Inc. to and from subsidiaries under a tax sharingagreement and tax payments to tax agencies during the years ended December 31, 2018 , 2017 and 2016 , respectively.

(5) Amounts to fund business acquisitions were $0, $215 million and $0 (included in capital contributions to subsidiaries) during the years ended December 31,2018 , 2017 and 2016 , respectively.

(6) In 2018, $268 million of Separation-related items (comprised of certain Separation-related inflows primarily related to reinsurance benefit fromBrighthouse) were included in free cash flow, which increased our holding companies’ liquid assets, as well as our free cash flow ratio. Excluding theseSeparation-related items, adjusted free cash flow would be $3.1 billion for the year ended December 31, 2018. In 2017, $2.1 billion of Separation-relateditems (comprised of certain Separation-related inflows primarily related to dividends from Brighthouse, net of outflows) were included in the free cash flow,which increased our holding companies’ liquid assets, as well as our free cash flow ratio. Excluding these Separation-related items, adjusted free cash flowwould be $3.6 billion for the year ended December 31, 2017. In 2016, we incurred $2.3 billion of Separation-related items (comprised of certain Separation-related outflows, net of inflows related to dividends from Brighthouse subsidiaries) which reduced our holding companies’ liquid assets, as well as our freecash flow and free cash flow ratio. Excluding these Separation-related items, adjusted free cash flow would be $4.7 billion for the year ended December 31,2016.

(7) See “— Non-GAAP and Other Financial Disclosures” for the reconciliation of net cash provided by operating activities of MetLife, Inc. to free cash flow ofall holding companies.

Sources and Uses of Liquid Assets of MetLife, Inc.

The primary sources of MetLife, Inc.’s liquid assets are dividends and returns of capital from subsidiaries, issuances of long-term debt, issuances ofcommon and preferred stock, and net receipts from subsidiaries under a tax sharing agreement. MetLife, Inc.’s insurance subsidiaries are subject to regulatoryrestrictions on the payment of dividends imposed by the regulators of their respective domiciles. See “— Liquidity and Capital Sources — Dividends fromSubsidiaries.”

The primary uses of MetLife, Inc.’s liquid assets are principal and interest payments on long-term debt, dividends on and repurchases of common andpreferred stock, capital contributions to subsidiaries, funding of business acquisitions, income taxes and operating expenses. MetLife, Inc. is party to variouscapital support commitments and guarantees with certain of its subsidiaries. See “— Liquidity and Capital Uses — Support Agreements.”

In addition, MetLife, Inc. issues loans to subsidiaries or subsidiaries issue loans to MetLife, Inc. Accordingly, changes in MetLife, Inc. liquid assetsinclude issuances of loans to subsidiaries, proceeds of loans from subsidiaries and the related repayment of principal and payment of interest on such loans.See “— Liquidity and Capital Sources — Affiliated Long-term Debt” and “— Liquidity and Capital Uses — Affiliated Capital and Debt Transactions.”

Sources and Uses of Liquid Assets of Other MetLife Holding Companies

The primary sources of liquid assets of other MetLife holding companies are dividends, returns of capital and remittances from their subsidiaries andbranches, principally non-U.S. insurance companies; capital contributions received; receipts of principal and interest on loans to subsidiaries and affiliates andborrowings from subsidiaries and affiliates. MetLife, Inc.’s non-U.S. operations are subject to regulatory restrictions on the payment of dividends imposed bylocal regulators. See “— Liquidity and Capital Sources — Dividends from Subsidiaries.”

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The primary uses of liquid assets of other MetLife holding companies are capital contributions paid to their subsidiaries and branches, principally non-U.S. insurance companies; loans to subsidiaries and affiliates; principal and interest paid on loans from subsidiaries and affiliates; dividends and returns ofcapital to MetLife, Inc. and the following items, which are reported within other, net: business acquisitions; and operating expenses. There were no uses ofliquid assets of other MetLife holding companies to fund business acquisitions during the years ended December 31, 2018 , 2017 , or 2016 .

LiquidityandCapitalSources

In addition to the description of liquidity and capital sources in “— The Company — Summary of the Company’s Primary Sources and Uses of Liquidityand Capital” and “— The Company — Liquidity and Capital Sources,” MetLife, Inc.’s primary sources of liquidity and capital are set forth below.

Dividends from Subsidiaries

MetLife, Inc. relies, in part, on dividends from its subsidiaries to meet its cash requirements. MetLife, Inc.’s insurance subsidiaries are subject toregulatory restrictions on the payment of dividends imposed by the regulators of their respective domiciles. See Note 15 of the Notes to the ConsolidatedFinancial Statements. The dividend limitation for U.S. insurance subsidiaries is generally based on the surplus to policyholders at the end of the immediatelypreceding calendar year and statutory net gain from operations for the immediately preceding calendar year. Statutory accounting practices, as prescribed byinsurance regulators of various states in which we conduct business, differ in certain respects from accounting principles used in financial statements preparedin conformity with GAAP. The significant differences relate to the treatment of DAC, certain deferred income tax, required investment liabilities, statutoryreserve calculation assumptions, goodwill and surplus notes.

The table below sets forth the dividends permitted to be paid by MetLife, Inc.’s primary insurance subsidiaries without insurance regulatory approval andthe actual dividends paid:

2019 2018 2017 2016

Company Permitted WithoutApproval (1) Paid (2) Permitted Without

Approval (3) Paid (2) Permitted WithoutApproval (3) Paid (2) Permitted Without

Approval (3)

(In millions) Metropolitan Life Insurance Company $ 3,096 $ 3,736 (3) $ 3,075 $ 2,523 $ 2,723 $ 5,740 (4) $ 3,753 American Life Insurance Company $ — $ 3,200 $ — $ 2,200 $ — $ — $ — Brighthouse Life Insurance Company N/A N/A N/A $ — $ 473 (5) $ 261 $ 586 Metropolitan Property and Casualty Insurance

Company $ 171 $ 233 $ 125 $ 185 $ 98 $ 228 $ 130 Metropolitan Tower Life Insurance Company

(6) $ 154 $ 191 (6) $ 73 $ — $ 66 $ 60 $ 70 New England Life Insurance Company N/A N/A N/A $ — $ 106 (5) $ 295 $ 156 General American Life Insurance Company

(6) N/A $ — $ 118 $ 1 $ 91 $ — $ 136 __________________

(1) Reflects dividend amounts that may be paid during the relevant year without prior regulatory approval (“ordinary dividends”). However, because dividendtests may be based on dividends previously paid over rolling 12-month periods, if paid before a specified date during such year, some or all of suchdividends may require regulatory approval.

(2) Reflects all amounts paid, including those where regulatory approval was obtained as required (“extraordinary dividends”).

(3) Represents ordinary dividends of $3.0 billion and an extraordinary dividend of $705 million . The extraordinary dividend was paid in cash with proceedsfrom the sale to an affiliate of certain property, equipment, leasehold improvements and computer software that were non-admitted by MLIC for statutoryaccounting purposes. The affiliate received a capital contribution in cash from MetLife, Inc. to fund the purchase.

(4) In 2016, MLIC paid an ordinary cash dividend to MetLife, Inc. in the amount of $3.6 billion. In addition, in December 2016, MLIC distributed all of theissued and outstanding shares of common stock of each of New England Life Insurance Company (“NELICO”) and GALIC to MetLife, Inc. in the form of anon-cash extraordinary dividend in the amount of $981 million and $1.2 billion, respectively, as calculated on a statutory basis.

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(5) In April 2017, in connection with the Separation, MetLife, Inc. contributed all of the issued and outstanding shares of common stock of each of BrighthouseInsurance and NELICO to Brighthouse Holdings, LLC. As a result of the Separation, Brighthouse Insurance and NELICO ceased to be subsidiaries ofMetLife, Inc. See Note 3 of the Notes to the Consolidated Financial Statements for information regarding the Separation.

(6) In April 2018, MTL merged with GALIC (“MTL Merger”). The surviving entity of the merger was MTL, which re-domesticated from Delaware toNebraska immediately prior to the merger. The total dividends paid of $191 million is equal to the sum of the individual 2018 ordinary dividends that MTLand GALIC would each have been permitted to pay computed on a stand-alone basis if the MTL Merger had not occurred.

In addition to the amounts presented in the table above, in August 2017, Brighthouse Financial, Inc. paid a cash dividend to MetLife, Inc. of $1.8 billionin connection with the Separation. For the years ended December 31, 2018 , 2017 and 2016 , MetLife, Inc. also received cash payments of $7 million, $39million and $26 million, respectively, representing dividends from non-Brighthouse subsidiaries. Additionally, for the year ended December 31, 2018 ,MetLife, Inc. received cash returns of capital of $87 million. For the year ended December 31, 2017, MetLife, Inc. received cash returns of capital of$610 million from certain subsidiaries, including $590 million from MetLife Reinsurance Company of South Carolina (“MRSC”), in connection with theSeparation. For the year ended December 31, 2016, MetLife, Inc. received cash of $80 million, representing returns of capital from certain subsidiaries. SeeNote 3 of the Notes to the Consolidated Financial Statements.

The dividend capacity of our non-U.S. operations is subject to similar restrictions established by the local regulators. The non-U.S. regulatory regimesalso commonly limit dividend payments to the parent company to a portion of the subsidiary’s prior year statutory income, as determined by the localaccounting principles. The regulators of our non-U.S. operations, including the FSA, may also limit or not permit profit repatriations or other transfers of fundsto the U.S. if such transfers are deemed to be detrimental to the solvency or financial strength of the non-U.S. operations, or for other reasons. Most of ournon-U.S. subsidiaries are second tier subsidiaries which are owned by various non-U.S. holding companies. The capital and rating considerations applicable toour first tier subsidiaries may also impact the dividend flow into MetLife, Inc.

We proactively manage target and excess capital levels and dividend flows and forecast local capital positions as part of the financial planning cycle. Thedividend capacity of certain U.S. and non-U.S. subsidiaries is also subject to business targets in excess of the minimum capital necessary to maintain thedesired rating or level of financial strength in the relevant market. See “Risk Factors — Capital Risks — As a Holding Company, MetLife, Inc. Depends onthe Ability of Its Subsidiaries to Pay Dividends, a Major Component of Holding Company Free Cash Flow” and Note 15 of the Notes to the ConsolidatedFinancial Statements.

Short-term Debt

MetLife, Inc. maintains a commercial paper program, the proceeds of which can be used to finance the general liquidity needs of MetLife, Inc. and itssubsidiaries. MetLife, Inc. had no short-term debt outstanding at either December 31, 2018 or 2017 .

Preferred Stock

For information on MetLife, Inc.’s preferred stock, see “— The Company — Liquidity and Capital Sources — Global Funding Sources — PreferredStock.”

Affiliated Long-term Debt

In May 2018, $500 million in senior notes previously issued by MetLife, Inc. to MLIC and other subsidiaries were redenominated to new 54.6 billionJapanese yen senior notes. The 54.6 billion Japanese yen senior notes mature in December 2021 and bear interest at a rate per annum of 3.14%, payable semi-annually.

In April 2018, $500 million in senior notes previously issued by MetLife, Inc. to MLIC and other subsidiaries were redenominated to new 53.7 billionJapanese yen senior notes. The 53.7 billion Japanese yen senior notes mature in July 2021 and bear interest at a rate per annum of 2.97%, payable semi-annually.

In March 2018, three senior notes previously issued by MetLife, Inc. to MLIC were redenominated to Japanese yen. A $500 million senior note wasredenominated to a new 53.3 billion Japanese yen senior note. The 53.3 billion Japanese yen senior note matures in June 2019 and bears interest at a rate perannum of 1.45%, payable semi-annually. A $250 million senior note was redenominated to a new 26.5 billion Japanese yen senior note. The 26.5 billionJapanese yen senior note matures in October 2019 and bears interest at a rate per annum of 1.72%, payable semi-annually. A $250 million senior note was alsoredenominated to a new 26.5 billion Japanese yen senior note. The 26.5 billion Japanese yen senior note matures in September 2020 and bears interest at a rateper annum of 0.82%, payable semi-annually.

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In September 2016, a $250 million senior note issued to MLIC matured and, subsequently, in September 2016 MetLife, Inc. issued a new $250 millionsenior note to MLIC. The senior note matures in September 2020 and bears interest at a rate per annum of 3.03%, payable semi-annually.

Collateral Financing Arrangement and Junior Subordinated Debt Securities

For information on MetLife, Inc.’s collateral financing arrangement and junior subordinated debt securities, see Notes 13 and 14 of the Notes to theConsolidated Financial Statements, respectively, and Note 5 of the Notes to the MetLife, Inc. (Parent Company Only) Condensed Financial Information inSchedule II.

Credit and Committed Facilities

See “— The Company — Liquidity and Capital Sources — Global Funding Sources — Credit and Committed Facilities,” as well as Note 12 of the Notesto the Consolidated Financial Statements, for further information regarding the unsecured revolving credit facility and these committed facilities.

In June 2016, MetLife, Inc. entered into a five-year agreement with an indirect wholly-owned subsidiary, MetLife Ireland Treasury d.a.c. (formerlyknown as MetLife Ireland Treasury Limited) (“MIT”), to borrow up to $1.3 billion on a revolving basis, at interest rates based on the IRS safe harbor interestrate in effect at the time of the borrowing. MetLife, Inc. may borrow funds under the agreement at MIT’s discretion and subject to the availability of funds.There were no outstanding borrowings at December 31, 2018 .

Long-term Debt Outstanding

The following table summarizes the outstanding long-term debt of MetLife, Inc. at:

December 31,

2018 2017

(In millions)

Long-term debt — unaffiliated $ 11,844 $ 14,599Long-term debt — affiliated (1) $ 1,957 $ 2,000Junior subordinated debt securities $ 2,456 $ 2,454__________________

(1) See “— Affiliated Long-term Debt.”

Debt and Facility Covenants

Certain of MetLife, Inc.’s debt instruments and committed facilities, as well as its unsecured revolving credit facility, contain various administrative,reporting, legal and financial covenants. MetLife, Inc. believes it was in compliance with all applicable financial covenants at December 31, 2018 .

Dispositions

Cash proceeds from dispositions during the years ended December 31, 2018 , 2017 and 2016 were $0, $0 and $291 million, respectively. See Note 3 ofthe Notes to the Consolidated Financial Statements.

LiquidityandCapitalUses

The primary uses of liquidity of MetLife, Inc. include debt service, cash dividends on common and preferred stock, capital contributions to subsidiaries,common stock, preferred stock and debt repurchases, payment of general operating expenses and acquisitions. Based on our analysis and comparison of ourcurrent and future cash inflows from the dividends we receive from subsidiaries that are permitted to be paid without prior insurance regulatory approval, ourinvestment portfolio and other cash flows and anticipated access to the capital markets, we believe there will be sufficient liquidity and capital to enable MetLife,Inc. to make payments on debt, pay cash dividends on its common and preferred stock, contribute capital to its subsidiaries, repurchase its common stock, pay allgeneral operating expenses and meet its cash needs.

In addition to the description of liquidity and capital uses in “— The Company — Liquidity and Capital Uses” and “— The Company — ContractualObligations,” MetLife, Inc.’s primary uses of liquidity and capital are set forth below.

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Affiliated Capital and Debt Transactions

During the years ended December 31, 2018 and 2017 , MetLife, Inc. invested a net amount of $778 million and $729 million, respectively, in various non-Brighthouse subsidiaries. During the year ended December 31, 2016 , MetLife, Inc. invested a net amount of $1.5 billion, in various subsidiaries, whichincluded a cash capital contribution of $1.5 billion to Brighthouse Insurance in connection with the Separation.

MetLife, Inc. lends funds, as necessary, through credit agreements or otherwise to its subsidiaries and affiliates, some of which are regulated, to meet theircapital requirements or to provide liquidity. MetLife, Inc. had loans to subsidiaries outstanding of $100 million at both December 31, 2018 and 2017 .

In April 2017, in connection with the Separation, MetLife Reinsurance Company of Delaware (“MRD”) repaid $750 million and $350 million of surplusnotes to MetLife, Inc., in an exchange transaction. The $750 million surplus note bore interest at a fixed rate of 5.13% and the $350 million surplus note boreinterest at a fixed rate of 6.00%, both payable semi-annually. Simultaneously, MetLife, Inc. repaid $750 million and $350 million senior notes to MRD.

In February 2017, in connection with the Separation, MetLife, Inc. exchanged $750 million aggregate principal amount of its 9.250% Fixed-to-FloatingRate Junior Subordinated Debentures due 2068 for $750 million aggregate liquidation preference of the 9.250% Fixed-to- Floating Rate Exchangeable SurplusTrust Securities of MetLife Capital Trust X (the “Trust”). As a result of the exchange, MetLife, Inc. became the sole beneficial owner of the Trust, a specialpurpose entity which issued the exchangeable surplus trust securities to third-party investors. In March 2017, MetLife, Inc. dissolved the Trust and became thedirect holder of $750 million 8.595% surplus notes previously held by the Trust that were issued by Brighthouse Insurance. See Note 14 of the Notes to theConsolidated Financial Statements. In June 2017, MetLife, Inc. forgave Brighthouse Insurance’s obligation to pay the principal amount of such surplus notes.This transaction, which was a non-cash capital contribution to Brighthouse Holdings, LLC, and a corresponding non-cash capital contribution to BrighthouseInsurance, had no impact on the consolidated financial statements of MetLife, Inc. as of the date of the transaction.

In April 2016, American Life issued a $140 million short-term note to MetLife, Inc. which was repaid in June 2016. The short-term note bore interest atsix-month LIBOR plus 1.00%.

Debt Repayments

For information on MetLife, Inc.’s debt repayments, see “— The Company — Liquidity and Capital Uses — Debt Repayments.” MetLife, Inc. intends torepay or refinance, in whole or in part, all the debt that is due in 2019 . See Note 3 of the Notes to the Consolidated Financial Statements for discussion of a$2.8 billion repayment on the MRSC collateral financing agreement liability in April 2017 in connection with the Separation, utilizing assets held in trust.

Repayments of Affiliated Long-term Debt

In April 2017, in connection with the Separation, MetLife, Inc. in an exchange transaction repaid $750 million and $350 million of senior notes to MRDdue September 2032 and December 2033, respectively. The $750 million senior note bore interest at a fixed rate of 4.21% and the $350 million senior notebore interest at a fixed rate of 5.10%. Simultaneously, MRD repaid $750 million and $350 million of surplus notes to MetLife, Inc.

In June 2016 and March 2016, MetLife, Inc. repaid $204 million and $10 million, respectively, of affiliated long-term debt to MetLife Exchange TrustI, at maturity, in exchange for returns of capital. The long-term notes bore interest at three-month LIBOR plus 0.70%.

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Maturities of Senior Notes

The following table summarizes MetLife, Inc.’s outstanding senior notes by year of maturity through 2023 and 2024 to 2046, excluding any premium ordiscount and unamortized issuance costs, at December 31, 2018 :

Year of Maturity Principal Interest Rate

(In millions)

2019 $ 486 (1) 1.45%2019 $ 242 (1) 1.72%2020 $ 509 5.25%2020 $ 242 (1) 0.82%2021 $ 368 4.75%2021 $ 490 (1) 2.97%2021 $ 497 (1) 3.14%2022 $ 500 3.05%2023 $ 1,000 4.37%2024 - 2046 $ 9,546 Ranging from 3.00% - 6.50%

__________________

(1) Represents affiliated debt.

Support Agreements

MetLife, Inc. is party to various capital support commitments and guarantees with certain of its subsidiaries. Under these arrangements, MetLife, Inc. hasagreed to cause each such entity to meet specified capital and surplus levels or has guaranteed certain contractual obligations. See “— The Company —Liquidity and Capital Uses — Support Agreements.”

MetLife, Inc. guarantees the obligations of its subsidiary, Missouri Reinsurance, Inc. (“MoRe”), under a retrocession agreement with RGA Reinsurance(Barbados) Inc., pursuant to which MoRe retrocedes a portion of the closed block liabilities associated with industrial life and ordinary life insurance policiesthat it assumed from MLIC.

MetLife, Inc. guarantees the obligations of MetLife Reinsurance Company of Bermuda, Ltd. (“MrB”), a Bermuda insurance affiliate and an indirect,wholly-owned subsidiary of MetLife, Inc. under a reinsurance agreement with Mitsui Sumitomo Primary Life Insurance Co., Ltd. (“Mitsui”), a former affiliatethat is now an unaffiliated third party, under which MrB reinsures certain variable annuity business written by Mitsui.

MetLife, Inc. guarantees the obligations of MrB in an aggregate amount up to $1.0 billion, under a reinsurance agreement with MetLife Europe d.a.c.(“MEL”) (formerly known as MetLife Europe Limited), under which MrB reinsured the guaranteed living benefits and guaranteed death benefits associatedwith certain unit-linked variable annuity type liability contracts issued by MEL.

MetLife, Inc., in connection with MetLife Reinsurance Company of Vermont’s (“MRV”) reinsurance of certain universal life and term life insurancerisks, committed to the Vermont Department of Banking, Insurance, Securities and Health Care Administration to take necessary action to cause the twoprotected cells of MRV to maintain total adjusted capital in an amount that is equal to or greater than 200% of each such protected cell’s authorized controllevel RBC, as defined in Vermont state insurance statutes. See Note 12 of the Notes to the Consolidated Financial Statements.

MetLife, Inc., in connection with the collateral financing arrangement associated with MRC’s reinsurance of a portion of the liabilities associated with theclosed block, committed to the South Carolina Department of Insurance to make capital contributions, if necessary, to MRC so that MRC may at all timesmaintain its total adjusted capital in an amount that is equal to or greater than 200% of the company action level RBC, as defined in South Carolina stateinsurance statutes as in effect on the date of determination or December 31, 2007, whichever calculation produces the greater capital requirement, or asotherwise required by the South Carolina Department of Insurance. See Note 13 of the Notes to the Consolidated Financial Statements.

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MetLife, Inc. guarantees obligations arising from OTC-bilateral derivatives of the following subsidiaries: MrB, MetLife International Holdings, LLC andMetLife Worldwide Holdings, LLC. These subsidiaries are exposed to various risks relating to their ongoing business operations, including interest rate,foreign currency exchange rate, credit and equity market. These subsidiaries use a variety of strategies to manage these risks, including the use of derivatives.Further, all of the subsidiaries’ derivatives are subject to industry standard netting agreements and collateral agreements that limit the unsecured portion of anyopen derivative position. On a net counterparty basis at December 31, 2018 and 2017 , derivative transactions with positive mark-to-market values (in-the-money) were $302 million and $515 million, respectively, and derivative transactions with negative mark-to-market values (out-of-the-money) were$84 million and $126 million, respectively. To secure the obligations represented by the out of-the-money transactions, the subsidiaries had provided collateralto their counterparties with an estimated fair value of $84 million and $114 million at December 31, 2018 and 2017 , respectively. Accordingly, unsecuredderivative liabilities guaranteed by MetLife, Inc. were $0 and $12 million at December 31, 2018 and 2017 , respectively.

MetLife, Inc. also guarantees the obligations of certain of its subsidiaries under committed facilities with third-party banks. See Note 12 of the Notes tothe Consolidated Financial Statements.

Acquisitions

Cash outflows for acquisitions during the years ended December 31, 2018 , 2017 and 2016 were $0, $211 million and $0, respectively.

Adoption of New Accounting Pronouncements

See Note 1 of the Notes to the Consolidated Financial Statements.

Future Adoption of New Accounting Pronouncements

See Note 1 of the Notes to the Consolidated Financial Statements.

Non-GAAP and Other Financial Disclosures

In this report, the Company presents certain measures of its performance that are not calculated in accordance with GAAP. We believe that these non-GAAPfinancial measures enhance the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of our business.

The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordancewith GAAP:

Non-GAAP financial measures: Comparable GAAP financial measures:

(i) adjusted revenues (i) revenues(ii) adjusted expenses (ii) expenses(iii) adjusted earnings (iii) income (loss) from continuing operations, net of income tax(iv) adjusted earnings available to common shareholders (iv) net income (loss) available to MetLife, Inc.’s common shareholders(v) free cash flow of all holding companies (v) MetLife, Inc. (parent company only) net cash provided by operating

activities

Reconciliations of these non-GAAP measures to the most directly comparable historical GAAP measures are included in this section and the results ofoperations, see “— Results of Operations.” Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are not accessible on aforward-looking basis because we believe it is not possible without unreasonable effort to provide other than a range of net investment gains and losses and netderivative gains and losses, which can fluctuate significantly within or outside the range and from period to period and may have a material impact on net income.

Our definitions of the various non-GAAP and other financial measures discussed in this report may differ from those used by other companies.

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Adjustedearningsandrelatedmeasures:

• adjusted earnings; and

• adjusted earnings available to common shareholders.

These measures are used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjustedearnings is also our GAAP measure of segment performance. Adjusted earnings and other financial measures based on adjusted earnings are also the measures bywhich senior management’s and many other employees’ performance is evaluated for the purposes of determining their compensation under applicablecompensation plans. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of our performance relative to our business plan andfacilitate comparisons to industry results.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. Adjusted loss is defined as negative adjusted earnings. Adjustedearnings available to common shareholders is defined as adjusted earnings less preferred stock dividends.

Adjustedrevenuesandadjustedexpenses

The financial measures of adjusted revenues and adjusted expenses focus on our primary businesses principally by excluding the impact of market volatility,which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, thesemeasures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MetLife but do not meet thediscontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also includes the net impact of transactions withexited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife thatdo not meet the criteria to be included in results of discontinued operations under GAAP. In addition, for the year ended December 31, 2016, adjusted revenuesand adjusted expenses exclude the financial impact of converting the Company’s Japan operations to calendar year-end reporting without retrospectiveapplication of this change to prior periods and is referred to as lag elimination. Adjusted revenues also excludes net investment gains (losses) and net derivativegains (losses). Adjusted expenses also excludes goodwill impairments.

The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues:

• Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and netderivative gains (losses) and certain variable annuity GMIB fees (“GMIB fees”);

• Net investment income: (i) includes earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that areused to replicate certain investments, but do not qualify for hedge accounting treatment (“Investment hedge adjustments”), (ii) excludes post-tax adjustedearnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to contractholder-directed equity securities (“Unit-linked contract income”), (iv) excludes certain amounts related to securitization entities that are VIEs consolidated underGAAP and (v) includes distributions of profits from certain other limited partnership interests that were previously accounted for under the cost method,but are now accounted for at estimated fair value, where the change in estimated fair value is recognized in net investment gains (losses) under GAAP;and

• Other revenues is adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided undertransition service agreements (“TSA fees”).

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The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:

• Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains(losses) and net derivative gains (losses), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments andamounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass throughadjustments, (iii) benefits and hedging costs related to GMIBs (“GMIB costs”) and (iv) market value adjustments associated with surrenders orterminations of contracts (“Market value adjustments”);

• Interest credited to policyholder account balances includes adjustments for earned income on derivatives and amortization of premium on derivatives thatare hedges of policyholder account balances but do not qualify for hedge accounting treatment and excludes certain amounts related to net investmentincome earned on contractholder-directed equity securities;

• Amortization of DAC and VOBA excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB fees andGMIB costs and (iii) Market value adjustments;

• Amortization of negative VOBA excludes amounts related to Market value adjustments;

• Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and

• Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements and (iii) acquisition,integration and other costs. Other expenses includes TSA fees.

Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for duringthe measurement period under GAAP business combination accounting guidance.

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’seffective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well ascertain tax reforms.

Returnonequity,allocatedequityandrelatedmeasures:

• MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA, is defined as MetLife, Inc.’s common stockholders’ equity, excludingthe net unrealized investment gains (losses) and defined benefit plans adjustment components of AOCI, net of income tax.

• Adjusted return on MetLife, Inc.’s common stockholders’ equity is defined as adjusted earnings available to common shareholders divided by MetLife,Inc.’s average common stockholders’ equity.

• Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA is defined as adjusted earnings available to commonshareholders divided by MetLife, Inc.’s average common stockholders’ equity, excluding AOCI other than FCTA.

• Allocated equity is the portion of MetLife, Inc.’s common stockholders’ equity that management allocates to each of its segments and sub-segments basedon local capital requirements and economic capital. See “— Economic Capital.” Allocated equity excludes the impact of AOCI other than FCTA.

The above measures represent a level of equity consistent with the view that, in the ordinary course of business, we do not plan to sell most investments for thesole purpose of realizing gains or losses. Also refer to the utilization of adjusted earnings and other financial measures based on adjusted earnings mentionedabove.

Expenseratioanddirectexpenseratio:

• Expense ratio: other expenses, net of capitalization of DAC, divided by premiums, fees and other revenues.

• Direct expense ratio: direct expenses, on an adjusted basis, divided by adjusted premiums, fees and other revenues. Direct expenses are comprised ofemployee-related costs, third party staffing costs, and general and administrative expenses.

• Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers: direct expenses, on an adjusted basis, excludingtotal notable items related to direct expenses, divided by adjusted premiums, fees and other revenues, excluding pension risk transfers.

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Thefollowingadditionalinformationisrelevanttoanunderstandingofourperformanceresults:

• The impact of changes in our foreign currency exchange rates is calculated using the average foreign currency exchange rates for the most recent yearbeing compared and applied to the comparable prior year (“Constant Currency Basis”).

• We sometimes refer to sales activity for various products. These sales statistics do not correspond to revenues under GAAP, but are used as relevantmeasures of business activity. Further, sales statistics for our Latin America, Asia and EMEA segments are on a Constant Currency Basis.

• Near-term represents one to three years.

• Asymmetrical and non-economic accounting refers to: (i) the portion of net derivative gains (losses) on embedded derivatives attributable to the inclusionof our credit spreads in the liability valuations, (ii) hedging activity that generates net derivative gains (losses) and creates fluctuations in net incomebecause hedge accounting cannot be achieved and the item being hedged does not a have an offsetting gain or loss recognized in earnings, (iii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rateadjustments based on the total return of a contractually referenced pool of assets and other pass through adjustments, and (iv) impact of changes in foreigncurrency exchange rates on the re-measurement of foreign denominated unhedged funding agreements and financing transactions to the U.S. dollar andthe re-measurement of certain liabilities from non-functional currencies to functional currencies. We believe that excluding the impact of asymmetricaland non-economic accounting from total GAAP results enhances investor understanding of our performance by disclosing how these accounting practicesaffect reported GAAP results.

• Notable items represent a positive (negative) impact to adjusted earnings available to common shareholders. Notable items reflect the unexpected impactof events that affect MetLife’s results, but that were unknown and that MetLife could not anticipate when it devised its Business Plan. Notable items alsoinclude certain items regardless of the extent anticipated in the Business Plan, to help investors have a better understanding of MetLife’s results and toevaluate and forecast those results.

• The Company uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its businesses or use innon-mandatory capital actions. The Company defines free cash flow as the sum of cash available at MetLife’s holding companies from dividends fromoperating subsidiaries, expenses and other net flows of the holding companies (including capital contributions to subsidiaries), and net contributions fromdebt to be at or below target leverage ratios. This measure of free cash flow is prior to capital actions, such as common stock dividends and repurchases,debt reduction and mergers and acquisitions. Free cash flow should not be viewed as a substitute for net cash provided by (used in) operating activitiescalculated in accordance with GAAP. The free cash flow ratio is typically expressed as a percentage of annual adjusted earnings available to commonshareholders. A reconciliation of net cash provided by operating activities of MetLife, Inc. (parent company only) to free cash flow of all holdingcompanies for the years ended December 31, 2018, 2017 and 2016 is provided below.

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Reconciliation of Net Cash Provided by Operating Activities of MetLife, Inc. to Free Cash Flowof All Holding Companies Years Ended December 31,

2018 2017 2016 (In millions)

MetLife, Inc. (parent company only) net cash provided by operating activities $ 5,494 $ 6,462 $ 3,747

Adjustments from net cash provided by operating activities to free cash flow: Add: Incremental debt to be at or below target leverage ratios — — —

Add: Capital contributions to subsidiaries (767) (124) (1,733)

Add: Returns of capital from subsidiaries 87 610 80

Add: Investment portfolio and derivatives changes and other, net (378) (780) (672)

MetLife, Inc. (parent company only) free cash flow 4,436 6,168 1,422

Other MetLife, Inc. holding companies: Add: Dividends and returns of capital from subsidiaries 2,836 2,125 1,485

Add: Capital contributions to subsidiaries (57) (12) (53)

Add: Repayments on and (issuances of) loans to subsidiaries, net (6) (6) (307)

Add: Other expenses (771) (626) (671)

Add: Dividends and returns of capital to MetLife, Inc. (3,200) (2,200) —

Add: Investment portfolio and derivative changes and other, net 168 218 548

Total other MetLife, Inc. holding companies free cash flow (1,030) (501) 1,002

Free cash flow of all holding companies (1) $ 3,406 $ 5,667 $ 2,424

Ratio of net cash provided by operating activities to consolidated net income (loss) available toMetLife, Inc.’s common shareholders:

MetLife, Inc. (parent company only) net cash provided by operating activities $ 5,494 $ 6,462 $ 3,747Consolidated net income (loss) available to MetLife, Inc.’s common shareholders (1) $ 4,982 $ 3,907 $ 747Ratio of net cash provided by operating activities (parent company only) to consolidated net income (loss) available to MetLife, Inc.'s common shareholders (1) (2) 110% 165% 502%

Ratio of free cash flow to adjusted earnings available to common shareholders: Free cash flow of all holding companies (3) $ 3,406 $ 5,667 $ 2,424

Consolidated adjusted earnings available to common shareholders (3) $ 5,461 $ 4,235 $ 4,033Ratio of free cash flow of all holding companies to consolidated adjusted earnings available to common shareholders (3) 62% 134% 60%

__________________

(1) Consolidated net income (loss) available to MetLife, Inc.’s common shareholders for 2018 includes Separation-related costs of $80 million, net of incometax. Excluding this amount from the denominator of the ratio, this ratio, as adjusted, would be 109%. Consolidated net income (loss) available to MetLife,Inc.’s common shareholders for 2017 includes Separation-related costs of $312 million, net of income tax. Excluding this amount from the denominator ofthe ratio, this ratio, as adjusted, would be 153%. Consolidated net income (loss) available to MetLife, Inc.'s common shareholders for 2016 includesSeparation-related costs of $73 million, net of income tax. Excluding this amount from the denominator of the ratio, this ratio, as adjusted, would be457%. See “ — Liquidity and Capital Resources — MetLife, Inc. — Liquid Assets — MetLife, Inc. and Other MetLife Holding Companies Sourcesand Uses of Liquid Assets and Sources and Uses of Liquid Assets included in Free Cash Flow.”

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(2) Including the free cash flow of other MetLife, Inc. holding companies of ($1.0) billion, ($501) million and $1.0 billion for the years ended December 31,2018, 2017 and 2016, respectively, in the numerator of the ratio, this ratio, as adjusted, would be 90%, 153% and 636%, respectively. Including the freecash flow of other MetLife, Inc. holding companies in the numerator of the ratio and excluding the Separation-related costs and uncertain tax positionnon-cash charge from the denominator of the ratio, this ratio, as adjusted, would be 88%, 141% and 579% for the years ended December 31, 2018, 2017and 2016, respectively.

(3) i) In 2018, $268 million of Separation-related items (comprised of certain Separation-related inflows primarily related to reinsurance benefit fromBrighthouse) were included in free cash flow, which increased our holding companies’ liquid assets, as well as our free cash flow ratio. Excluding theseSeparation-related items, adjusted free cash flow would be $3.1 billion for the year ended December 31, 2018. Consolidated adjusted earnings available tocommon shareholders for 2018 was negatively impacted by notable items, primarily related to expense initiative costs of $284 million, net of income tax,partially offset by tax adjustments of $247 million, net of income tax. Excluding the Separation-related items, which increased free cash flow, from thenumerator of the ratio and excluding such notable items negatively impacting consolidated adjusted earnings available to common shareholders from thedenominator of the ratio, the adjusted free cash flow ratio for 2018 would be 56%.

ii) In 2017, $2.1 billion of Separation-related items (comprised of certain Separation-related inflows primarily related to dividends from Brighthouse, netof outflows) were included in the free cash flow, which increased our holding companies’ liquid assets, as well as our free cash flow ratio. Excludingthese Separation-related items, adjusted free cash flow would be $3.6 billion for the year ended December 31, 2017. Consolidated adjusted earningsavailable to common shareholders for 2017 was negatively impacted by notable items, primarily related to tax adjustments, of $622 million, net of incometax. Excluding the Separation-related items, which increased free cash flow, from the numerator of the ratio and excluding such notable items negativelyimpacting consolidated adjusted earnings available to common shareholders from the denominator of the ratio, the adjusted free cash flow ratio for 2017would be 75%.

iii) In 2016, we incurred $2.3 billion of Separation-related items (comprised of certain Separation-related outflows, net of inflows related todividends from Brighthouse subsidiaries) which reduced our holding companies’ liquid assets, as well as our free cash flow and free cash flow ratio.Excluding these Separation-related items, adjusted free cash flow would be $4.7 billion for the year ended December 31, 2016. Consolidated adjustedearnings available to common shareholders for 2016 was negatively impacted by notable items, primarily related to the actuarial assumption review andother insurance adjustments, of $709 million , net of income tax, and Separation-related costs of $15 million, net of income tax. Excluding the Separation-related items, which reduced free cash flow, from the numerator of the ratio and excluding such notable items and Separation-related costs negativelyimpacting consolidated adjusted earnings available to common shareholders from the denominator of the ratio, the adjusted free cash flow ratio for 2016would be 98%.

Subsequent Events

See Note 22 of the Notes to the Consolidated Financial Statements.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

RiskManagement

We have an integrated process for managing risk, which we conduct through multiple Board and senior management committees (financial and non-financial)across the GRM, ALM, Finance, Treasury, Investments and business segment departments. The risk committee structure is designed to provide a consolidatedenterprise-wide assessment and management of risk. The ERC is responsible for reviewing all material risks to the enterprise and deciding on actions, if necessary,in the event risks exceed desired tolerances, taking into consideration industry best practices and the current environment to resolve or mitigate those risks.Additional committees at the MetLife, Inc. and subsidiary insurance company level manage capital and risk positions and establish corporate business standards.

GlobalRiskManagement

Independent from the lines of business, the centralized GRM, led by the CRO, coordinates across all committees to ensure that all material risks are properlyidentified, measured, aggregated, managed and reported across the Company. The CRO reports to the Chief Executive Officer (“CEO”) and is primarilyresponsible for maintaining and communicating the Company’s enterprise risk policies and for monitoring and analyzing all material risks.

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GRM considers and monitors a full range of risks against the Company’s solvency, liquidity, earnings, business operations and reputation. GRM’s primaryresponsibilities consist of:

• implementing a corporate risk framework, which outlines our enterprise approach for managing risk;

• developing policies and procedures for identifying, managing, measuring, monitoring and controlling those risks identified in the corporate riskframework;

• coordinating Own Risk and Solvency Assessments for Board, senior management and regulator use;

• establishing appropriate corporate risk tolerance levels;

• recommending risk appetite statements and investment general authorizations to the Board;

• measuring capital on an economic basis;

• recommending capital allocations on an economic capital basis; and

• reporting to (i) the Finance and Risk Committee of MetLife, Inc.’s Board of Directors; (ii) the Investment Committee of MetLife, Inc.’s Board ofDirectors; (iii) the Compensation Committee of MetLife, Inc.’s Board of Directors; and (iv) the financial and non-financial senior managementcommittees on various aspects of risk.

Asset/LiabilityManagement

We actively manage our assets using an approach that is liability driven and balances quality, diversification, asset/liability matching, liquidity,concentration and investment return. The goals of the investment process are to optimize, net of income tax, risk-adjusted investment income and risk-adjustedtotal return while ensuring that the assets and liabilities are reasonably aligned on a cash flow and duration basis. The ALM process is the shared responsibility ofthe ALM, GRM, and Investments departments, with the engagement of senior members of the business segments, and is governed by the ALM Committees. TheALM Committees’ duties include reviewing and approving target portfolios investment guidelines and limits, approving significant portfolio and ALM strategiesand providing oversight of the ALM process. The directives of the ALM Committees are carried out and monitored through ALM Working Groups which are setup to manage risk by geography, product or portfolio type. The ALM Steering Committee oversees the activities of the underlying ALM Committees andWorking Groups. The ALM Steering Committee reports to the ERC.

We establish portfolio guidelines that define ranges and limits related to asset allocation, interest rate risk, liquidity, concentration and other risks for eachmajor business segment, legal entity or insurance product group. These guidelines support implementation of investment strategies used to adequately fund ourliabilities within acceptable levels of risk. We also establish hedging programs and associated investment portfolios for different blocks of business. The ALMWorking Groups monitor these strategies and programs through regular review of portfolio metrics, such as effective duration, yield curve sensitivity, convexity,value at risk, market sensitivities (to interest rates, equity market levels, equity volatility, and foreign exchange rates), stress scenario payoffs, liquidity, foreignexchange, asset sector concentration and credit quality.

MarketRiskExposures

We regularly analyze our exposure to interest rate, foreign currency exchange rate and equity market price risk. As a result of that analysis, we havedetermined that the estimated fair values of certain assets and liabilities are materially exposed to changes in interest rates, foreign currency exchange rates andequity markets. We have exposure to market risk through our insurance operations and investment activities. For purposes of this disclosure, “market risk” isdefined as the risk of loss resulting from changes in interest rates, foreign currency exchange rates and equity markets.

InterestRates

Our exposure to interest rate changes results most significantly from our holdings of fixed maturity securities, as well as our interest rate sensitive liabilities.The fixed maturity securities AFS include U.S. and foreign government bonds, securities issued by government agencies, corporate bonds, mortgage-backedsecurities and ABS, all of which are mainly exposed to changes in medium- and long-term interest rates. The interest rate sensitive liabilities for purposes of thisdisclosure include debt, policyholder account balances related to certain investment type contracts, and embedded derivatives on variable annuities withguaranteed minimum benefits which have the same type of interest rate exposure (medium- and long-term interest rates) as fixed maturity securities AFS. Theinterest rate sensitive liabilities for purposes of this disclosure exclude a significant portion of the liabilities relating to insurance contracts. See “Risk Factors —Economic Environment and Capital Markets Risks — Difficult Economic Conditions May Adversely Affect Our Business, Results of Operations and FinancialCondition.”

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ForeignCurrencyExchangeRates

Our exposure to fluctuations in foreign currency exchange rates against the U.S. dollar results from our holdings in non-U.S. dollar denominated fixedmaturity and equity securities, mortgage loans, and certain liabilities, as well as through our investments in foreign subsidiaries. The foreign currency exchangerate liabilities for purposes of this disclosure exclude a significant portion of the liabilities relating to insurance contracts. The principal currencies that createforeign currency exchange rate risk in our investment portfolios and liabilities are the Euro, the Japanese yen and the British pound. Selectively, we useU.S. dollar assets to support certain long-duration foreign currency liabilities. Through our investments in foreign subsidiaries and joint ventures, we areprimarily exposed to the Japanese yen, the Euro, the Australian dollar, the British pound, the Mexican peso, the Chilean peso and the Korean won. In addition tohedging with foreign currency swaps, forwards and options, local surplus in some countries may be held entirely or in part in U.S. dollar assets, which furtherminimize exposure to foreign currency exchange rate fluctuation risk. We have matched much of our foreign currency liabilities in our foreign subsidiaries withtheir respective foreign currency assets, thereby reducing our risk to foreign currency exchange rate fluctuation. See “Risk Factors — Economic Environmentand Capital Markets Risks — Difficult Economic Conditions May Adversely Affect Our Business, Results of Operations and Financial Condition.”

EquityMarket

Along with investments in equity securities, we have exposure to equity market risk through certain liabilities that involve long-term guarantees on equityperformance such as embedded derivatives on variable annuities with guaranteed minimum benefits and certain policyholder account balances. Equity exposuresassociated with limited partnership interests are excluded from this discussion as they are not considered financial instruments under GAAP.

ManagementofMarketRiskExposures

We use a variety of strategies to manage interest rate, foreign currency exchange rate and equity market risk, including the use of derivatives.

InterestRateRiskManagement

To manage interest rate risk, we analyze interest rate risk using various models, including multi-scenario cash flow projection models that forecast cashflows of the liabilities and their supporting investments, including derivatives. These projections involve evaluating the potential gain or loss on most of our in-force business under various increasing and decreasing interest rate environments. The NYDFS regulations require that we perform some of these analysesannually as part of our review of the sufficiency of our regulatory reserves. For several of our legal entities, we maintain segmented operating and surplus assetportfolios for the purpose of ALM and the allocation of investment income to product lines. In the U.S., for each segment, invested assets greater than or equal tothe GAAP liabilities net of certain non-invested assets allocated to the segment are maintained, with any excess allocated to Corporate & Other. The businesssegments may reflect differences in legal entity, statutory line of business and any product market characteristic which may drive a distinct investment strategywith respect to duration, liquidity or credit quality of the invested assets. Certain smaller entities make use of unsegmented general accounts for which theinvestment strategy reflects the aggregate characteristics of liabilities in those entities. We measure relative sensitivities of the value of our assets and liabilitiesto changes in key assumptions utilizing internal models. These models reflect specific product characteristics and include assumptions based on current andanticipated experience regarding lapse, mortality and interest crediting rates. In addition, these models include asset cash flow projections reflecting interestpayments, sinking fund payments, principal payments, bond calls, mortgage loan prepayments and defaults.

We employ product design, pricing and ALM strategies to reduce the potential effects of interest rate movements. Product design and pricing strategiesinclude the use of surrender charges or restrictions on withdrawals in some products and the ability to reset crediting rates for certain products. ALM strategiesinclude the use of derivatives. We also use reinsurance to mitigate interest rate risk.

We also use common industry metrics, such as duration and convexity, to measure the relative sensitivity of assets and liability values to changes in interestrates. In computing the duration of liabilities, we consider all policyholder guarantees and how we intend to set indeterminate policy elements such as interestcredits or dividends. Each asset portfolio or portfolio group has a duration target based on the liability duration and the investment objectives of that portfolio.Where a liability cash flow may exceed the maturity of available assets, we may support such liabilities with equity investments, derivatives or interest rate curvemismatch strategies.

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ForeignCurrencyExchangeRateRiskManagement

MetLife has a well-established Enterprise Foreign Exchange (“FX”) Risk Policy to manage foreign currency exchange rate exposures within its risktolerance. In general, investments backing specific liabilities are currency matched. This is achieved through direct investments in matching currency or throughthe use of FX derivatives. Enterprise FX risk limits are established by the ERC. Management of each of our segments, with oversight from our FX RiskCommittee and the respective ALM committee for the segment, is responsible for managing any foreign currency exchange rate exposure.

We use foreign currency swaps, forwards and options to mitigate the liability exposure, risk of loss and financial statement volatility associated with ourinvestments in foreign subsidiaries, foreign currency denominated fixed income investments and the sale of certain insurance products.

EquityMarketRiskManagement

We manage equity market risk on an integrated basis with other risks through our ALM strategies, including the dynamic hedging of certain variable annuityguarantee benefits, as well as reinsurance, in order to limit losses, minimize exposure to large risks, and provide additional capacity for future growth. We alsomanage equity market risk exposure in our investment portfolio through the use of derivatives. These derivatives include exchange-traded equity futures, equityindex options contracts, total rate of return swaps and equity variance swaps. This risk is managed by our ALM Unit in partnership with the InvestmentsDepartment.

HedgingActivities

We use derivative contracts primarily to hedge a wide range of risks including interest rate risk, foreign currency exchange rate risk, and equity market risk.Derivative hedges are designed to reduce risk on an economic basis while considering their impact on financial results under different accounting regimes,including U.S. GAAP and local statutory accounting. Our derivative hedge programs vary depending on the type of risk being hedged. Some hedge programs areasset or liability specific while others are portfolio hedges that reduce risk related to a group of liabilities or assets. Our use of derivatives by major hedgeprograms is as follows:

• Risks Related to Guarantee Benefits — We use a wide range of derivative contracts to mitigate the risk associated with living guarantee benefits. Thesederivatives include equity and interest rate futures, interest rate swaps, currency futures/forwards, equity indexed options, total rate of return swaps,interest rate option contracts and equity variance swaps.

• Minimum Interest Rate Guarantees — For certain liability contracts, we provide the contractholder a guaranteed minimum interest rate. These contractsinclude certain fixed annuities and other insurance liabilities. We purchase interest rate caps and floors to reduce risk associated with these liabilityguarantees.

• Reinvestment Risk in Long-Duration Liability Contracts — Derivatives are used to hedge interest rate risk related to certain long-duration liabilitycontracts. Hedges include interest rate swaps and swaptions.

• Foreign Currency Exchange Rate Risk — We use currency swaps, forwards and options to hedge foreign currency exchange rate risk. These hedges aregenerally used to swap foreign currency denominated bonds, investments in foreign subsidiaries or equity market exposures to U.S. dollars. Our foreignsubsidiaries also use these hedges to swap non-local currency assets to local currency, to match liabilities .

• General ALM Hedging Strategies — In the ordinary course of managing our asset/liability risks, we use interest rate futures, interest rate swaps, interestrate caps, and inflation swaps. These hedges are designed to reduce interest rate risk or inflation risk related to the existing assets or liabilities or related toexpected future cash flows.

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RiskMeasurement:SensitivityAnalysis

We measure market risk related to our market sensitive assets and liabilities based on changes in interest rates, foreign currency exchange rates and equitymarket prices utilizing a sensitivity analysis. For purposes of this disclosure, a significant portion of the liabilities relating to insurance contracts is excluded, asdiscussed further below. This analysis estimates the potential changes in estimated fair value based on a hypothetical 10% change (increase or decrease) in interestrates, foreign currency exchange rates and equity market prices. We believe that a 10% change (increase or decrease) in these market rates and prices is reasonablypossible in the near term. In performing the analysis summarized below, we used market rates at December 31, 2018 . The sensitivity analysis separately calculateseach of our market risk exposures (interest rate, foreign currency exchange rate and equity market) relating to our assets and liabilities. We modeled the impact ofchanges in market rates and prices on the estimated fair values of our market sensitive assets and liabilities as follows:

• the net present values of our interest rate sensitive exposures resulting from a 10% change (increase or decrease) in interest rates;

• the U.S. dollar equivalent estimated fair values of our foreign currency exposures due to a 10% change (increase in the value of the U.S. dollar comparedto all foreign currencies or decrease in the value of the U.S. dollar compared to all foreign currencies) in foreign currency exchange rates; and

• the estimated fair value of our equity positions due to a 10% change (increase or decrease) in equity market prices.

The sensitivity analysis is an estimate and should not be viewed as predictive of our future financial performance. We cannot ensure that our actual losses inany particular period will not exceed the amounts indicated in the table below. Limitations related to this sensitivity analysis include:

• interest sensitive and foreign currency exchange sensitive liabilities do not include $203.3 billion , at carrying value, of insurance contracts. Managementbelieves that the changes in the economic value of those contracts under changing interest rates and changing foreign currency exchange rates wouldoffset a significant portion of the fair value changes of interest sensitive and foreign currency exchange rate sensitive assets;

• the market risk information is limited by the assumptions and parameters established in creating the related sensitivity analysis, including the impact ofprepayment rates on mortgage loans;

• sensitivities do not include the impact on asset or liability valuation of changes in market liquidity or changes in market credit spreads;

• foreign currency risk is not isolated for certain embedded derivatives within host asset and liability contracts, as the risk on these instruments is reflectedas equity;

• for the derivatives that qualify as hedges, and for certain other assets such as mortgage loans, the impact on reported earnings may be materially differentfrom the change in market values;

• the analysis excludes liabilities pursuant to insurance contracts and real estate holdings; and

• the model assumes that the composition of assets and liabilities remains unchanged throughout the period.

Accordingly, we use such models as tools and not as substitutes for the experience and judgment of our management. Based on our analysis of the impact of a10% change (increase or decrease) in market rates and prices, we have determined that such a change could have a material adverse effect on the estimated fairvalue of certain assets and liabilities from interest rate, foreign currency exchange rate and equity market exposures.

The table below illustrates the potential loss in estimated fair value for each market risk exposure of our market sensitive assets and liabilities at:

December 31, 2018 (In millions)Interest rate risk $ 5,656Foreign currency exchange rate risk $ 7,807Equity market risk $ (1)__________________

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The risk sensitivities derived used a 10% increase to interest rates, a 10% strengthening of the U.S. dollar against foreign currencies, and a 10% increase inequity prices. The potential losses in estimated fair value presented are for non-trading securities.

The table below provides additional detail regarding the potential loss in estimated fair value of our interest sensitive financial instruments due to a 10%increase in interest rates by type of asset or liability at:

December 31, 2018

NotionalAmount

EstimatedFair

Value (1) Assuming a

10% Increasein Interest Rates

(In millions)

Assets Fixed maturity securities AFS $ 298,265 $ (5,180)

Equity securities $ 1,440 —

FVO Securities $ 871 (8)

Mortgage loans $ 76,379 (816)

Policy loans $ 11,366 (131)

Short-term investments $ 3,937 (5)

Other invested assets $ 1,413 —

Cash and cash equivalents $ 15,821 —

Accrued investment income $ 3,582 —

Premiums, reinsurance and other receivables $ 3,797 (23)

Other assets $ 350 (4)

Embedded derivatives within asset host contracts (2) $ 71 —

Total assets $ (6,167)

Liabilities (3) Policyholder account balances $ 110,313 $ 757

Payables for collateral under securities loaned and other transactions $ 24,794 —

Short-term debt $ 268 —

Long-term debt $ 13,611 342

Collateral financing arrangement $ 853 —

Junior subordinated debt securities $ 3,738 104

Other liabilities $ 3,518 68

Embedded derivatives within liability host contracts (2) $ 810 161

Total liabilities $ 1,432

Derivative Instruments Interest rate swaps $ 60,852 $ 3,958 $ (565)

Interest rate floors $ 12,701 $ 102 (26)

Interest rate caps $ 54,575 $ 153 62

Interest rate futures $ 2,353 $ (2) 8

Interest rate options $ 26,690 $ 416 (91)

Interest rate forwards $ 3,256 $ (230) (121)

Interest rate total return swaps $ 1,048 $ 31 (54)

Synthetic GICs $ 25,700 $ — —

Foreign currency swaps $ 48,552 $ 445 (139)

Foreign currency forwards $ 16,517 $ (28) 22

Currency futures $ 847 $ 4 —

Currency options $ 7,177 $ (192) (1)

Credit default swaps $ 13,294 $ 68 —

Equity futures $ 2,992 $ (64) (1)

Equity index options $ 27,707 $ 334 (15)

Equity variance swaps $ 2,269 $ (47) —

Equity total return swaps $ 929 $ 91 —

Total derivative instruments $ (921)

Net Change $ (5,656)

__________________

(1) Separate account assets and liabilities and Unit-linked investments and associated policyholder account balances, which are interest rate sensitive, are notincluded herein as any interest rate risk is borne by the contractholder, notwithstanding any general account guarantees which are included within embeddedderivatives (see footnote (2) below) or included within future policy benefits and other policy-related balances (see footnote (3) below). FVO Securities andlong-term debt exclude $4 million and $5 million, respectively, related to CSEs.

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(2) Embedded derivatives are recognized on the consolidated balance sheet in the same caption as the host contract.

(3) Excludes $ 203.3 billion of liabilities, at carrying value, pursuant to insurance contracts reported within future policy benefits and other policy-relatedbalances. These liabilities would economically offset a significant portion of the net change in fair value of our financial instruments resulting from a 10%increase in interest rates.

Sensitivity to rising interest rates decreased $206 million, or 4%, to $5.7 billion at December 31, 2018 from $5.9 billion at December 31, 2017.

The table below provides additional detail regarding the potential loss in estimated fair value of our portfolio due to a 10% increase in the U.S. dollarcompared to all foreign currencies at:

December 31, 2018

NotionalAmount

EstimatedFair

Value (1)

Assuming a 10% Increase in the Foreign Exchange Rate

(In millions)

Assets Fixed maturity securities AFS $ 298,265 $ (9,560)Equity securities $ 1,440 (47)FVO Securities $ 871 (88)Mortgage loans $ 76,379 (856)Policy loans $ 11,366 (161)Short-term investments $ 3,937 (329)Other invested assets $ 1,413 (264)Cash and cash equivalents $ 15,821 (472)Accrued investment income $ 3,582 (94)Premiums, reinsurance and other receivables $ 3,797 (101)Other assets $ 350 (18)Embedded derivatives within asset host contracts (2) $ 71 (7)

Total assets $ (11,997)Liabilities (3)

Policyholder account balances $ 110,313 $ 3,453Payables for collateral under securities loaned and other transactions $ 24,794 136Long-term debt $ 13,611 106Other liabilities $ 3,518 20Embedded derivatives within liability host contracts (2) $ 810 61

Total liabilities $ 3,776Derivative Instruments

Interest rate swaps$ 60,852 $ 3,958 $ (71)

Interest rate floors$ 12,701 $ 102 —

Interest rate caps$ 54,575 $ 153 —

Interest rate futures$ 2,353 $ (2) —

Interest rate options$ 26,690 $ 416 (21)

Interest rate forwards$ 3,256 $ (230) 1

Interest rate total return swaps$ 1,048 $ 31 —

Synthetic GICs$ 25,700 $ — —

Foreign currency swaps$ 48,552 $ 445 1,037

Foreign currency forwards$ 16,517 $ (28) (769)

Currency futures$ 847 $ 4 (87)

Currency options$ 7,177 $ (192) 319

Credit default swaps$ 13,294 $ 68 (4)

Equity futures$ 2,992 $ (64) —

Equity index options$ 27,707 $ 334 9

Equity variance swaps$ 2,269 $ (47) —

Equity total return swaps$ 929 $ 91 —

Total derivative instruments $ 414Net Change $ (7,807)

__________________

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(1) Does not necessarily represent those financial instruments solely subject to foreign currency exchange rate risk. Separate account assets and liabilities andUnit-linked investments and associated policyholder account balances, which are foreign currency exchange rate sensitive, are not included herein as anyforeign currency exchange rate risk is borne by the contractholder, notwithstanding any general account guarantees which are included within embeddedderivatives (see footnote (2) below) or included within future policy benefits and other policy-related balances (see footnote (3) below). FVO Securities andlong-term debt exclude $4 million and $5 million, respectively, related to CSEs.

(2) Embedded derivatives are recognized on the consolidated balance sheet in the same caption as the host contract.

(3) Excludes $ 203.3 billion of liabilities, at carrying value, pursuant to insurance contracts reported within future policy benefits and other policy-relatedbalances. These liabilities would economically offset a significant portion of the net change in fair value of our financial instruments resulting from a 10%appreciation in the U.S. dollar relative to all other currencies.

Sensitivity to foreign currency exchange rates decreased $60 million to $7.8 billion at December 31, 2018 from $7.9 billion at December 31, 2017. Thesesensitivities exclude those liabilities, at carrying value, pursuant to insurance contracts reported within future policy benefits and other policy-related balances.These liabilities would economically offset a significant portion of the net change in fair value of our financial instruments resulting from a 10% appreciation in theU.S. dollar relative to all other currencies.

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The table below provides additional detail regarding the potential loss in estimated fair value of our portfolio due to a 10% increase in equity prices by type ofasset or liability at:

December 31, 2018

NotionalAmount

Estimated Fair

Value (1)

Assuming a10% Increase

in EquityPrices

(In millions)

Assets Equity securities $ 1,440 $ 144FVO Securities $ 871 33Embedded derivatives within asset host contracts (2) $ 71 —

Total assets $ 177Liabilities (3)

Policyholder account balances $ 110,313 $ —Embedded derivatives within liability host contracts (2) $ 810 329

Total liabilities $ 329Derivative Instruments

Interest rate swaps$ 60,852 $ 3,958 $ —

Interest rate floors$ 12,701 $ 102 —

Interest rate caps$ 54,575 $ 153 —

Interest rate futures$ 2,353 $ (2) —

Interest rate options$ 26,690 $ 416 —

Interest rate forwards$ 3,256 $ (230) —

Interest rate total return swaps$ 1,048 $ 31 —

Synthetic GICs$ 25,700 $ — —

Foreign currency swaps$ 48,552 $ 445 —

Foreign currency forwards$ 16,517 $ (28) —

Currency futures$ 847 $ 4 —

Currency options$ 7,177 $ (192) —

Credit default swaps$ 13,294 $ 68 —

Equity futures$ 2,992 $ (64) (227)

Equity index options$ 27,707 $ 334 (198)

Equity variance swaps$ 2,269 $ (47) 1

Equity total return swaps$ 929 $ 91 (81)

Total derivative instruments $ (505)Net Change $ 1

__________________

(1) Does not necessarily represent those financial instruments solely subject to equity price risk. Additionally, separate account assets and liabilities and Unit-linked investments and associated policyholder account balances, which are equity market sensitive, are not included herein as any equity market risk isborne by the contractholder, notwithstanding any general account guarantees which are included within embedded derivatives (see footnote (2) below) orincluded within future policy benefits and other policy-related balances (see footnote (3) below).

(2) Embedded derivatives are recognized on the consolidated balance sheet in the same caption as the host contract.

(3) Excludes $203.3 billion of liabilities, at carrying value, pursuant to insurance contracts reported within future policy benefits and other policy-relatedbalances.

As of December 31, 2018, sensitivity to a 10% equity market increase was $1 million. This compares to a $71 million sensitivity to a 10% equity marketdecrease at December 31, 2017.

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Item 8. Financial Statements and Supplementary Data

Index to Consolidated Financial Statements, Notes and Schedules

Page

Report of Independent Registered Public Accounting Firm 181Financial Statements at December 31, 2018 and 2017 and for the Years Ended December 31, 2018, 2017 and 2016:

Consolidated Balance Sheets 182Consolidated Statements of Operations 183Consolidated Statements of Comprehensive Income (Loss) 184Consolidated Statements of Equity 185Consolidated Statements of Cash Flows 186Notes to the Consolidated Financial Statements

Note 1 — Business, Basis of Presentation and Summary of Significant Accounting Policies 188Note 2 — Segment Information 207Note 3 — Dispositions 213Note 4 — Insurance 222Note 5 — Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles 240Note 6 — Reinsurance 243Note 7 — Closed Block 247Note 8 — Investments 249Note 9 — Derivatives 270Note 10 — Fair Value 284Note 11 — Goodwill 301Note 12 — Long-term and Short-term Debt 303Note 13 — Collateral Financing Arrangement 306Note 14 — Junior Subordinated Debt Securities 307Note 15 — Equity 308Note 16 — Other Revenues and Other Expenses 325Note 17 — Employee Benefit Plans 326Note 18 — Income Tax 336Note 19 — Earnings Per Common Share 343Note 20 — Contingencies, Commitments and Guarantees 344Note 21 — Quarterly Results of Operations (Unaudited) 352Note 22 — Subsequent Events 353

Financial Statement Schedules at December 31, 2018 and 2017 and for the Years Ended December 31, 2018, 2017 and 2016: Schedule I — Consolidated Summary of Investments — Other Than Investments in Related Parties 354Schedule II — Condensed Financial Information (Parent Company Only) 355Schedule III — Consolidated Supplementary Insurance Information 363Schedule IV — Consolidated Reinsurance 365

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the stockholders and the Board of Directors of MetLife, Inc.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of MetLife, Inc. and subsidiaries (the “Company”) as of December 31, 2018 and 2017, the relatedconsolidated statements of operations, comprehensive income (loss), equity, and cash flows for each of the three years in the period ended December 31, 2018, andthe related notes and the schedules listed in the Index to Consolidated Financial Statements, Notes and Schedules (collectively referred to as the “consolidatedfinancial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as ofDecember 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in conformitywith accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internalcontrol over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committeeof Sponsoring Organizations of the Treadway Commission and our report dated February 21, 2019, expressed an unqualified opinion on the Company’s internalcontrol over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’sconsolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respectto the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and thePCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performingprocedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures thatrespond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financialstatements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overallpresentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLPNew York, New YorkFebruary 21, 2019

We have served as the Company’s auditor since at least 1968; however, an earlier year could not be reliably determined.

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MetLife, Inc.

Consolidated Balance SheetsDecember 31, 2018 and 2017

(In millions, except share and per share data)

2018 2017

Assets Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $286,816 and $286,069, respectively) $ 298,265 $ 308,931Equity securities, at estimated fair value 1,440 2,513Contractholder-directed equity securities and fair value option securities, at estimated fair value (includes $4 and $6, respectively, relating to variable interest entities) 12,616 16,745Mortgage loans (net of valuation allowances of $342 and $314, respectively; includes $299 and $520, respectively, under the fair value option) 75,752 68,731Policy loans 9,699 9,669Real estate and real estate joint ventures (includes $0 and $25, respectively, of real estate held-for-sale) 9,698 9,637Other limited partnership interests 6,613 5,708Short-term investments, principally at estimated fair value 3,937 4,870Other invested assets (includes $141 and $125, respectively, relating to variable interest entities) 18,190 17,263

Total investments 436,210 444,067Cash and cash equivalents, principally at estimated fair value (includes $52 and $12, respectively, relating to variable interest entities) 15,821 12,701Accrued investment income 3,582 3,524Premiums, reinsurance and other receivables (includes $3 and $3, respectively, relating to variable interest entities) 19,644 18,423Deferred policy acquisition costs and value of business acquired 18,895 18,419Goodwill 9,422 9,590Other assets (includes $2 and $2, respectively, relating to variable interest entities) 8,408 8,167Separate account assets 175,556 205,001

Total assets $ 687,538 $ 719,892

Liabilities and Equity Liabilities Future policy benefits $ 186,780 $ 177,974Policyholder account balances 183,693 182,518Other policy-related balances 16,529 15,515Policyholder dividends payable 677 682Policyholder dividend obligation 428 2,121Payables for collateral under securities loaned and other transactions 24,794 25,723Short-term debt 268 477Long-term debt (includes $5 and $6, respectively, at estimated fair value, relating to variable interest entities) 12,829 15,686Collateral financing arrangement 1,060 1,121Junior subordinated debt securities 3,147 3,144Current income tax payable 441 311Deferred income tax liability 5,414 6,767Other liabilities (includes $1 and $3, respectively, relating to variable interest entities) 22,964 23,982Separate account liabilities 175,556 205,001

Total liabilities 634,580 661,022Contingencies, Commitments and Guarantees (Note 20) Equity MetLife, Inc.’s stockholders’ equity: Preferred stock, par value $0.01 per share; $3,405 and $2,100 aggregate liquidation preference, respectively — —Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,171,824,242 and 1,168,710,101 shares issued, respectively; 958,613,542 and 1,043,588,396 shares

outstanding, respectively 12 12Additional paid-in capital 32,474 31,111Retained earnings 28,926 26,527Treasury stock, at cost; 213,210,700 and 125,121,705 shares, respectively (10,393) (6,401)Accumulated other comprehensive income (loss) 1,722 7,427

Total MetLife, Inc.’s stockholders’ equity 52,741 58,676Noncontrolling interests 217 194

Total equity 52,958 58,870Total liabilities and equity $ 687,538 $ 719,892

See accompanying notes to the consolidated financial statements.

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Consolidated Statements of OperationsFor the Years Ended December 31, 2018, 2017 and 2016

(In millions, except per share data)

2018 2017 2016Revenues Premiums $ 43,840 $ 38,992 $ 37,202Universal life and investment-type product policy fees 5,502 5,510 5,483Net investment income 16,166 17,363 16,790Other revenues 1,880 1,341 1,685Net investment gains (losses): Other-than-temporary impairments on fixed maturity securities available-for-sale (40) (11) (96)Other-than-temporary impairments on fixed maturity securities available-for-sale transferred to other comprehensive

income (loss) — 1 (11)Other net investment gains (losses) (258) (298) 424

Total net investment gains (losses) (298) (308) 317Net derivative gains (losses) 851 (590) (690)

Total revenues 67,941 62,308 60,787Expenses Policyholder benefits and claims 42,656 38,313 36,358Interest credited to policyholder account balances 4,013 5,607 5,176Policyholder dividends 1,251 1,231 1,223Other expenses 13,714 13,621 13,749

Total expenses 61,634 58,772 56,506Income (loss) from continuing operations before provision for income tax 6,307 3,536 4,281

Provision for income tax expense (benefit) 1,179 (1,470) 693Income (loss) from continuing operations, net of income tax 5,128 5,006 3,588

Income (loss) from discontinued operations, net of income tax — (986) (2,734)Net income (loss) 5,128 4,020 854

Less: Net income (loss) attributable to noncontrolling interests 5 10 4Net income (loss) attributable to MetLife, Inc. 5,123 4,010 850

Less: Preferred stock dividends 141 103 103Net income (loss) available to MetLife, Inc.’s common shareholders $ 4,982 $ 3,907 $ 747

Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders percommon share: Basic $ 4.95 $ 4.57 $ 3.16

Diluted $ 4.91 $ 4.53 $ 3.13

Net income (loss) available to MetLife, Inc.’s common shareholders per common share: Basic $ 4.95 $ 3.65 $ 0.68

Diluted $ 4.91 $ 3.62 $ 0.67

See accompanying notes to the consolidated financial statements.

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Consolidated Statements of Comprehensive Income (Loss)For the Years Ended December 31, 2018, 2017 and 2016

(In millions)

2018 2017 2016Net income (loss) $ 5,128 $ 4,020 $ 854Other comprehensive income (loss): Unrealized investment gains (losses), net of related offsets (8,719) 4,623 796Unrealized gains (losses) on derivatives 674 (1,165) 573Foreign currency translation adjustments (587) 767 (363)Defined benefit plans adjustment 263 144 131

Other comprehensive income (loss), before income tax (8,369) 4,369 1,137Income tax (expense) benefit related to items of other comprehensive income (loss) 1,754 (984) (450)

Other comprehensive income (loss), net of income tax (6,615) 3,385 687Comprehensive income (loss) (1,487) 7,405 1,541

Less: Comprehensive income (loss) attributable to noncontrolling interest, net of income tax 7 14 92Comprehensive income (loss) attributable to MetLife, Inc. $ (1,494) $ 7,391 $ 1,449

See accompanying notes to the consolidated financial statements.

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MetLife, Inc.

Consolidated Statements of EquityFor the Years Ended December 31, 2018 , 2017 and 2016

(In millions)

PreferredStock Common

Stock Additional

Paid-inCapital Retained

Earnings Treasury

Stockat Cost

AccumulatedOther

ComprehensiveIncome (Loss)

TotalMetLife, Inc.’sStockholders’

Equity NoncontrollingInterests Total

EquityBalance at December 31, 2015 $ — $ 12 $ 30,749 $ 35,672 $ (3,102) $ 4,767 $ 68,098 $ 470 $ 68,568Treasury stock acquired in connection with

share repurchases (372) (372) (372)Stock-based compensation 195 195 195Dividends on preferred stock (103) (103) (103)Dividends on common stock (1,736) (1,736) (1,736)

Change in equity of noncontrolling interests — (391) (391)Net income (loss) 850 850 4 854Other comprehensive income (loss), net of

income tax 599 599 88 687Balance at December 31, 2016 — 12 30,944 34,683 (3,474) 5,366 67,531 171 67,702Treasury stock acquired in connection with

share repurchases (2,927) (2,927) (2,927)Stock-based compensation 167 167 167Dividends on preferred stock (103) (103) (103)Dividends on common stock (1,717) (1,717) (1,717)Distribution of Brighthouse, net of income tax

(Note 3) (10,346) (1,320) (11,666) (11,666)

Change in equity of noncontrolling interests — 9 9Net income (loss) 4,010 4,010 10 4,020Other comprehensive income (loss), net of

income tax 3,381 3,381 4 3,385Balance at December 31, 2017 — 12 31,111 26,527 (6,401) 7,427 58,676 194 58,870Cumulative effects of changes in accounting

principles, net of income tax (Note 1) (905) 912 7 7Balance at January 1, 2018 — 12 31,111 25,622 (6,401) 8,339 58,683 194 58,877Preferred stock issuance 1,274 1,274 1,274Treasury stock acquired in connection with

share repurchases (3,992) (3,992) (3,992)Stock-based compensation 89 89 89Dividends on preferred stock (141) (141) (141)Dividends on common stock (1,678) (1,678) (1,678)Change in equity of noncontrolling interests — 16 16Net income (loss) 5,123 5,123 5 5,128Other comprehensive income (loss), net of

income tax (6,617) (6,617) 2 (6,615)Balance at December 31, 2018 $ — $ 12 $ 32,474 $ 28,926 $ (10,393) $ 1,722 $ 52,741 $ 217 $ 52,958

See accompanying notes to the consolidated financial statements.

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Consolidated Statements of Cash FlowsFor the Years Ended December 31, 2018 , 2017 and 2016

(In millions)

2018 2017 2016

Cash flows from operating activities Net income (loss)

$ 5,128 $ 4,020 $ 854Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization expenses

628 795 652Amortization of premiums and accretion of discounts associated with investments, net

(1,013) (1,044) (1,110)(Gains) losses on investments and from sales of businesses, net

298 363 (183)(Gains) losses on derivatives, net

(207) 3,610 8,779(Income) loss from equity method investments, net of dividends or distributions

251 194 475Interest credited to policyholder account balances

4,013 6,260 6,282Universal life and investment-type product policy fees

(5,502) (7,708) (9,207)Goodwill impairment

— — 260Change in contractholder-directed equity securities and fair value option securities

2,212 (436) 111Change in accrued investment income

(121) (280) (31)Change in premiums, reinsurance and other receivables

(1,809) (991) (2,158)Change in deferred policy acquisition costs and value of business acquired, net

(249) (693) (937)Change in income tax

940 (2,796) (1,522)Change in other assets

260 691 3,248Change in insurance-related liabilities and policy-related balances

7,454 8,511 6,321Change in other liabilities

(483) 1,603 2,801Other, net

(62) 184 139Net cash provided by (used in) operating activities

11,738 12,283 14,774Cash flows from investing activities Sales, maturities and repayments of:

Fixed maturity securities available-for-sale106,677 95,945 150,658

Equity securities342 1,433 1,241

Mortgage loans9,918 10,353 12,977

Real estate and real estate joint ventures1,227 972 826

Other limited partnership interests675 1,082 1,542

Purchases and originations of: Fixed maturity securities available-for-sale

(105,401) (105,683) (146,397)Equity securities

(235) (920) (1,006)Mortgage loans

(17,059) (14,374) (21,017)Real estate and real estate joint ventures

(1,118) (1,446) (1,515)Other limited partnership interests

(1,406) (1,486) (1,313)Cash received in connection with freestanding derivatives

3,778 5,315 4,259Cash paid in connection with freestanding derivatives

(4,173) (8,696) (6,963)Cash disposed due to distribution of Brighthouse

— (663) —Sales of businesses, net of cash and cash equivalents disposed of $0, $0 and $135, respectively

— — 156Purchases of businesses

— (211) —Net change in policy loans

(37) (67) 195Net change in short-term investments

870 2,087 1,270Net change in other invested assets

340 (171) (306)Other, net

(32) (346) (457)Net cash provided by (used in) investing activities

$ (5,634) $ (16,876) $ (5,850)

See accompanying notes to the consolidated financial statements.

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Consolidated Statements of Cash Flows — (continued)For the Years Ended December 31, 2018 , 2017 and 2016

(In millions)

2018 2017 2016

Cash flows from financing activities Policyholder account balances:

Deposits$ 92,327 $ 88,511 $ 88,188

Withdrawals(88,061) (82,380) (83,263)

Payables for collateral under securities loaned and other transactions: Net change in payables for collateral under securities loaned and other transactions

(821) 903 (3,636)Cash received for other transactions with tenors greater than three months

200 — —Long-term debt issued

24 3,657 —Long-term debt repaid

(1,871) (1,073) (1,279)Collateral financing arrangements repaid

(61) (2,951) (68)Distribution of Brighthouse

— (2,793) —Financing element on certain derivative instruments and other derivative related transactions, net

144 (151) (1,367)Treasury stock acquired in connection with share repurchases

(3,992) (2,927) (372)Preferred stock issued, net of issuance costs

1,274 — —Dividends on preferred stock

(141) (103) (103)Dividends on common stock

(1,678) (1,717) (1,736)Other, net

(145) 118 139Net cash provided by (used in) financing activities

(2,801) (906) (3,497)Effect of change in foreign currency exchange rates on cash and cash equivalents balances

(183) 323 (302)Change in cash and cash equivalents

3,120 (5,176) 5,125Cash and cash equivalents, beginning of year

12,701 17,877 12,752Cash and cash equivalents, end of year $ 15,821 $ 12,701 $ 17,877

Cash and cash equivalents, of disposed subsidiary, beginning of year $ — $ 5,226 $ 1,570

Cash and cash equivalents, of disposed subsidiary, end of year $ — $ — $ 5,226

Cash and cash equivalents, from continuing operations, beginning of year $ 12,701 $ 12,651 $ 11,182

Cash and cash equivalents, from continuing operations, end of year $ 15,821 $ 12,701 $ 12,651

Supplemental disclosures of cash flow information: Net cash paid (received) for:

Interest $ 1,130 $ 1,118 $ 1,202

Income tax $ 1,935 $ 1,530 $ 672

Non-cash transactions Fixed maturity securities available-for-sale received in connection with pension risk transfer transactions $ 3,016 $ — $ 985

Brighthouse common stock exchange transaction (Note 3): Reduction of long-term debt $ 944 $ — $ —

Reduction of fair value option securities $ 1,030 $ — $ —

Disposal of Brighthouse (See Note 3): Assets disposed

$ — $ 225,502 $ —Liabilities disposed

— (210,999) —Net assets disposed

— 14,503 —Cash disposed

— (3,456) —Net non-cash disposed

$ — $ 11,047 $ —Reduction of fixed maturity securities available-for-sale in connection with a reinsurance transaction $ — $ — $ 224

Reduction of other invested assets in connection with a reinsurance transaction $ — $ — $ 676

Deconsolidation of operating joint venture: Reduction of fixed maturity securities available-for-sale $ — $ — $ 917

Reduction of noncontrolling interests $ — $ — $ 373

See accompanying notes to the consolidated financial statements.

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MetLife, Inc.

Notes to the Consolidated Financial Statements

1. Business, Basis of Presentation and Summary of Significant Accounting Policies

Business

“MetLife” and the “Company” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. MetLife is one of the world’sleading financial services companies, providing insurance, annuities, employee benefits and asset management. MetLife is organized into five segments: U.S.;Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MetLife Holdings.

BasisofPresentation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requiresmanagement to adopt accounting policies and make estimates and assumptions that affect amounts reported on the consolidated financial statements. In applyingthese policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain.Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’sbusiness and operations. Actual results could differ from these estimates.

Consolidation

The accompanying consolidated financial statements include the accounts of MetLife, Inc. and its subsidiaries, as well as partnerships and joint ventures inwhich the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts andtransactions have been eliminated.

Effective January 1, 2016, the Company converted its Japan operations from a fiscal year cutoff of November 30th to calendar year-end reporting. Theelimination of a one-month reporting lag of a subsidiary is considered a change in accounting principle and requires retrospective application. While theCompany believes that eliminating the lag in the reporting of its Japan operations was preferable in order to consistently reflect events, economic conditions andglobal trends on the financial statements, the Company determined that it was impracticable to apply the effects of the lag elimination to financial reportingperiods prior to January 1, 2015. The effect of not retroactively applying this change in accounting, however, was not material to the 2016 consolidated financialstatements. Therefore, the Company reported the cumulative effect of the change in accounting principle in net income for the year ended December 31, 2016.

DiscontinuedOperations

The results of operations of a component of the Company that has either been disposed of or is classified as held-for-sale are reported in discontinuedoperations if certain criteria are met. A disposal of a component is reported in discontinued operations if the disposal represents a strategic shift that has or willhave a major effect on the Company’s operations and financial results.

On August 4, 2017, MetLife, Inc. completed the separation of Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”) through a distribution of96,776,670 shares of Brighthouse Financial, Inc. common stock to the MetLife, Inc. common shareholders (the “Separation”). The results of Brighthouse arereflected in MetLife, Inc.’s consolidated financial statements as discontinued operations and, therefore, are presented as income (loss) from discontinuedoperations on the consolidated statements of operations. Intercompany transactions between the Company and Brighthouse prior to the Separation have beeneliminated. Transactions between the Company and Brighthouse after the Separation are reflected in continuing operations for the Company. See Note 3 forinformation on discontinued operations and transactions with Brighthouse.

SeparateAccounts

Separate accounts are established in conformity with insurance laws. Generally, the assets of the separate accounts cannot be used to settle the liabilities thatarise from any other business of the Company. Separate account assets are subject to general account claims only to the extent the value of such assets exceedsthe separate account liabilities. The Company reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separateaccounts if:

• such separate accounts are legally recognized;

• assets supporting the contract liabilities are legally insulated from the Company’s general account liabilities;

• investments are directed by the contractholder; and

• all investment performance, net of contract fees and assessments, is passed through to the contractholder.

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

The Company reports separate account assets at their fair value which is based on the estimated fair values of the underlying assets comprising theindividual separate account portfolios. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains(losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line on the statements of operations.Separate accounts credited with a contractual investment return are combined on a line-by-line basis with the Company’s general account assets, liabilities,revenues and expenses and the accounting for these investments is consistent with the methodologies described herein for similar financial instruments heldwithin the general account. Unit-linked separate account investments that are directed by contractholders but do not meet one or more of the other above criteriaare included in fair value option (“FVO”) securities (“FVO Securities”).

The Company’s revenues reflect fees charged to the separate accounts, including mortality charges, risk charges, policy administration fees, investmentmanagement fees and surrender charges. Such fees are included in universal life and investment-type product policy fees on the statements of operations.

Reclassifications

Certain amounts in the prior years’ consolidated financial statements and related footnotes thereto have been reclassified to conform to the current yearpresentation as discussed throughout the Notes to the Consolidated Financial Statements.

SummaryofSignificantAccountingPolicies

The following are the Company’s significant accounting policies with references to notes providing additional information on such policies and criticalaccounting estimates relating to such policies.

Accounting Policy Note

Insurance 4

Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles 5

Reinsurance 6

Investments 8

Derivatives 9

Fair Value 10

Goodwill 11

Employee Benefit Plans 17

Income Tax 18

Litigation Contingencies 20

Insurance

Future Policy Benefit Liabilities and Policyholder Account Balances

The Company establishes liabilities for amounts payable under insurance policies. Generally, amounts are payable over an extended period of time andrelated liabilities are calculated as the present value of future expected benefits to be paid, reduced by the present value of future expected premiums. Suchliabilities are established based on methods and underlying assumptions in accordance with GAAP and applicable actuarial standards. Principal assumptionsused in the establishment of liabilities for future policy benefits are mortality, morbidity, policy lapse, renewal, retirement, disability incidence, disabilityterminations, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type and geographical area. Theseassumptions are established at the time the policy is issued and are intended to estimate the experience for the period the policy benefits are payable. Utilizingthese assumptions, liabilities are established on a block of business basis. For long duration insurance contracts, assumptions such as mortality, morbidity andinterest rates are “locked in” upon the issuance of new business. However, significant adverse changes in experience on such contracts may require theestablishment of premium deficiency reserves. Such reserves are determined based on the then current assumptions and do not include a provision for adversedeviation.

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Premium deficiency reserves may also be established for short-duration contracts to provide for expected future losses. These reserves are based onactuarial estimates of the amount of loss inherent in that period, including losses incurred for which claims have not been reported. The provisions forunreported claims are calculated using studies that measure the historical length of time between the incurred date of a claim and its eventual reporting to theCompany. Anticipated investment income is considered in the calculation of premium deficiency losses for short-duration contracts.

Liabilities for universal and variable life policies with secondary guarantees (“ULSG”) and paid-up guarantees are determined by estimating the expectedvalue of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the life of the contract based ontotal expected assessments. The assumptions used in estimating the secondary and paid-up guarantee liabilities are consistent with those used for amortizingdeferred policy acquisition costs (“DAC”), and are thus subject to the same variability and risk as further discussed herein. The assumptions of investmentperformance and volatility for variable products are consistent with historical experience of appropriate underlying equity indices, such as the S&P GlobalRatings (“S&P”) 500 Index. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios.

The Company regularly reviews its estimates of liabilities for future policy benefits and compares them with its actual experience. Differences result inchanges to the liability balances with related charges or credits to benefit expenses in the period in which the changes occur.

Policyholder account balances relate to contracts or contract features where the Company has no significant insurance risk.

The Company issues directly and assumes through reinsurance variable annuity products with guaranteed minimum benefits that provide the policyholdera minimum return based on their initial deposit adjusted for withdrawals. These guarantees are accounted for as insurance liabilities or as embeddedderivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid withoutrequiring (i) the occurrence of a specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insuranceliability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. In certain cases, a guarantee may haveelements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models.

Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits (“GMDBs”), the life-contingentportion of guaranteed minimum withdrawal benefits (“GMWBs”), elective annuitizations of guaranteed minimum income benefits (“GMIBs”), and the lifecontingent portion of GMIBs that require annuitization when the account balance goes to zero.

Guarantees accounted for as embedded derivatives in policyholder account balances include guaranteed minimum accumulation benefits (“GMABs”), thenon-life contingent portion of GMWBs and certain non-life contingent portions of GMIBs. At inception, the Company attributes to the embedded derivative aportion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Anyadditional fees represent “excess” fees and are reported in universal life and investment-type product policy fees.

Other Policy-Related Balances

Other policy-related balances include policy and contract claims, premiums received in advance, unearned revenue liabilities, obligations assumed understructured settlement assignments, policyholder dividends due and unpaid, policyholder dividends left on deposit and negative value of business acquired(“VOBA”).

The liability for policy and contract claims generally relates to incurred but not reported (“IBNR”) death, disability, long-term care and dental claims, aswell as claims which have been reported but not yet settled. The liability for these claims is based on the Company’s estimated ultimate cost of settling allclaims. The Company derives estimates for the development of IBNR claims principally from analyses of historical patterns of claims by business line. Themethods used to determine these estimates are continually reviewed. Adjustments resulting from this continuous review process and differences betweenestimates and payments for claims are recognized in policyholder benefits and claims expense in the period in which the estimates are changed or paymentsare made.

The Company accounts for the prepayment of premiums on its individual life, group life and health contracts as premiums received in advance and appliesthe cash received to premiums when due.

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

The unearned revenue liability relates to universal life-type and investment-type products and represents policy charges for services to be provided infuture periods. The charges are deferred as unearned revenue and amortized using the product’s estimated gross profits and margins, similar to DAC asdiscussed further herein. Such amortization is recorded in universal life and investment-type product policy fees.

See Note 3 for additional information on obligations assumed under structured settlement assignments.

See “— Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles” for a discussion of negative VOBA.

Recognition of Insurance Revenues and Deposits

Premiums related to traditional life, annuity contracts with life contingencies, long-duration accident & health, and credit insurance policies arerecognized as revenues when due from policyholders. Policyholder benefits and expenses are provided to recognize profits over the estimated lives of theinsurance policies. When premiums are due over a significantly shorter period than the period over which benefits are provided, any excess profit is deferredand recognized into earnings in a constant relationship to insurance in-force or, for annuities, the amount of expected future policy benefit payments.

Premiums related to short-duration non-medical health and disability, accident & health, and certain credit insurance contracts are recognized on a pro ratabasis over the applicable contract term.

Deposits related to universal life-type and investment-type products are credited to policyholder account balances. Revenues from such contracts consistof fees for mortality, policy administration and surrender charges and are recorded in universal life and investment-type product policy fees in the period inwhich services are provided. Amounts that are charged to earnings include interest credited and benefit claims incurred in excess of related policyholderaccount balances.

Premiums related to property & casualty contracts are recognized as revenue on a pro rata basis over the applicable contract term. Unearned premiums,representing the portion of premium written related to the unexpired coverage, are also included in future policy benefits.

All revenues and expenses are presented net of reinsurance as applicable.

DeferredPolicyAcquisitionCosts,ValueofBusinessAcquiredandOtherIntangibles

The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successfulacquisition or renewal of insurance contracts are capitalized as DAC. Such costs include:

• incremental direct costs of contract acquisition, such as commissions;

• the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewalinsurance business only with respect to actual policies acquired or renewed;

• other essential direct costs that would not have been incurred had a policy not been acquired or renewed; and

• the costs of direct-response advertising, the primary purpose of which is to elicit sales to customers who could be shown to have responded specifically tothe advertising and that results in probable future benefits.

All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development,unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred.

VOBA is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquiredinsurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, byeach block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses,investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

DAC and VOBA are amortized as follows:

Products: In proportion to the following over estimated lives of the contracts:

• Nonparticipating and non-dividend-paying traditional contracts: Actual and expected future gross premiums.

• Term insurance • Nonparticipating whole life insurance • Traditional group life insurance • Non-medical health insurance • Accident & health insurance

• Participating, dividend-paying traditional contracts Actual and expected future gross margins.

• Fixed and variable universal life contracts Actual and expected future gross profits.• Fixed and variable deferred annuity contracts • Credit insurance contracts Actual and future earned premiums.• Property & casualty insurance contracts • Other short-duration contracts

See Note 5 for additional information on DAC and VOBA amortization. Amortization of DAC and VOBA is included in other expenses.

The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financialstatements for reporting purposes.

The Company generally has two different types of sales inducements which are included in other assets: (i) the policyholder receives a bonus whereby thepolicyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s deposit; and (ii) the policyholder receives ahigher interest rate using a dollar cost averaging method than would have been received based on the normal general account interest rate credited. The Companydefers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization ofsales inducements is included in policyholder benefits and claims. Each year, or more frequently if circumstances indicate a potential recoverability issue exists,the Company reviews deferred sales inducements (“DSI”) to determine the recoverability of the asset.

Value of distribution agreements acquired (“VODA”) is reported in other assets and represents the present value of expected future profits associated withthe expected future business derived from the distribution agreements acquired as part of a business combination. Value of customer relationships acquired(“VOCRA”) is also reported in other assets and represents the present value of the expected future profits associated with the expected future business acquiredthrough existing customers of the acquired company or business. The VODA and VOCRA associated with past business combinations are amortized over usefullives ranging from 10 to 40 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possibleimpairment exists, the Company reviews VODA and VOCRA to determine whether the asset is impaired.

For certain acquired blocks of business, the estimated fair value of the in-force contract obligations exceeded the book value of assumed in-force insurancepolicy liabilities, resulting in negative VOBA, which is presented separately from VOBA as an additional insurance liability. The fair value of the in-forcecontract obligations is based on projections by each block of business. Negative VOBA is amortized over the policy period in proportion to the approximateconsumption of losses included in the liability usually expressed in terms of insurance in-force or account value. Such amortization is recorded as an offset inother expenses.

Reinsurance

For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating toinsurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as theprimary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject orfeatures that delay the timely reimbursement of claims.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amountspaid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsuranceagreement. The net cost of reinsurance is recorded as an adjustment to DAC when there is a gain at inception on the ceding entity, and to other liabilities whenthere is a loss at inception. The net cost of reinsurance is recognized as a component of other expenses when there is a gain at inception, and as policyholderbenefits and claims when there is a loss at inception and is subsequently amortized on a basis consistent with the methodology used for amortizing DAC relatedto the underlying reinsured contracts. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related tonew business, are recorded as ceded (assumed) premiums; and ceded (assumed) premiums, reinsurance and other receivables (future policy benefits) areestablished.

For prospective reinsurance of short-duration contracts that meet the criteria for reinsurance accounting, amounts paid (received) are recorded asceded (assumed) premiums and ceded (assumed) unearned premiums. Unearned premiums are reflected as a component of premiums, reinsurance and otherreceivables (future policy benefits). Such amounts are amortized through earned premiums over the remaining contract period in proportion to the amount ofinsurance protection provided. For retroactive reinsurance of short-duration contracts that meet the criteria of reinsurance accounting, amounts paid (received) inexcess of the related insurance liabilities ceded (assumed) are recognized immediately as a loss and are reported in the appropriate line item within the statementof operations. Any gain on such retroactive agreement is deferred and is amortized as part of DAC, primarily using the recovery method.

Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payableare included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if aright of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of thereinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net ofallowances for uncollectible reinsurance.

Premiums, fees and policyholder benefits and claims include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amountsreceived from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accountedfor as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives. These embedded derivatives are included in premiums,reinsurance and other receivables with changes in estimated fair value reported in policyholder benefits and claims.

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk,the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are includedwithin premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities areadjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of theexpected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate.

Investments

Net Investment Income and Net Investment Gains (Losses)

Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairmentlosses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein.

Fixed Maturity Securities

The majority of the Company’s fixed maturity securities are classified as available-for-sale (“AFS”) and are reported at their estimated fair value.Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Sales of securities are determined on a specificidentification basis.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect toamortization of premium and accretion of discount, and is based on the estimated economic life of the securities, which for mortgage-backed and asset-backedsecurities considers the estimated timing and amount of prepayments of the underlying loans. See Note 8 “— Fixed Maturity Securities AFS — Methodologyfor Amortization of Premium and Accretion of Discount on Structured Securities.” The amortization of premium and accretion of discount also takes intoconsideration call and maturity dates.

The Company periodically evaluates these securities for impairment. The assessment of whether impairments have occurred is based on management’scase-by-case evaluation of the underlying reasons for the decline in estimated fair value, as well as an analysis of the gross unrealized losses by severity and/orage as described in Note 8 “— Evaluation of Fixed Maturity Securities AFS for OTTI and Evaluating Temporarily Impaired Fixed Maturity Securities AFS.”

For securities in an unrealized loss position, an other-than-temporary impairment (“OTTI”) is recognized in earnings within net investment gains (losses)when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely thannot that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security’samortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value ofprojected future cash flows expected to be collected is recognized as an OTTI in earnings (“credit loss”). If the estimated fair value is less than the presentvalue of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors (“noncredit loss”) is recorded in OCI.

Equity Securities

Equity securities are reported at their estimated fair value, with changes in estimated fair value included in net investment gains (losses). Sales ofsecurities are determined on a specific identification basis. Dividends are recognized in net investment income when declared.

Contractholder-Directed Equity Securities and FVO Securities

Contractholder-directed equity securities and FVO Securities (collectively, “Unit-linked and FVO Securities”) are investments for which the FVO hasbeen elected, or are otherwise required to be carried at estimated fair value, and include:

• contractholder-directed investments supporting unit-linked variable annuity type liabilities (“Unit-linked investments”) which do not qualify forpresentation and reporting as separate account summary total assets and liabilities. These investments are primarily equity securities (including mutualfunds) and, to a lesser extent, fixed maturity securities, short-term investments and cash and cash equivalents. The investment returns on these investmentsinure to contractholders and are offset by a corresponding change in policyholder account balances through interest credited to policyholder accountbalances;

• fixed maturity and equity securities held-for-investment by the general account to support asset and liability management strategies for certain insuranceproducts and investments in certain separate accounts; and

• securities held by consolidated securitization entities (“CSEs”).

At December 31, 2017, Unit-linked and FVO Securities also included t he estimated fair value of the Brighthouse Financial, Inc. common stock held bythe Company (“FVO Brighthouse Common Stock”). S ee Note 3 .

Mortgage Loans

The Company disaggregates its mortgage loan investments into three portfolio segments: commercial, agricultural and residential. The accounting policiesthat are applicable to all portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 8 .

Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net ofvaluation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method givingeffect to amortization of premium and accretion of discount.

Also included in mortgage loans are residential mortgage loans for which the FVO was elected, and which are stated at estimated fair value. Changes inestimated fair value are recognized in net investment income.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Policy Loans

Policy loans are stated at unpaid principal balances. Interest income is recorded as earned using the contractual interest rate. Generally, accrued interest iscapitalized on the policy’s anniversary date. Valuation allowances are not established for policy loans, as they are fully collateralized by the cash surrendervalue of the underlying insurance policies. Any unpaid principal and accrued interest is deducted from the cash surrender value or the death benefit prior tosettlement of the insurance policy.

Real Estate

Real estate held-for-investment is stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated usefullife of the asset (typically 20 to 55 years ). Rental income is recognized on a straight-line basis over the term of the respective leases. The Companyperiodically reviews its real estate held-for-investment for impairment and tests for recoverability whenever events or changes in circumstances indicate thecarrying value may not be recoverable. Properties whose carrying values are greater than their undiscounted cash flows are written down to their estimated fairvalue, which is generally computed using the present value of expected future cash flows discounted at a rate commensurate with the underlying risks.

Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition for a reasonable price incomparison to its estimated fair value is classified as held-for-sale. Real estate held-for-sale is stated at the lower of depreciated cost or estimated fair valueless expected disposition costs and is not depreciated.

Real Estate Joint Ventures and Other Limited Partnership Interests

The Company uses the equity method of accounting for real estate joint ventures and other limited partnership interests (“investee”) when it has more thana minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’searnings in net investment income on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’sreporting period differs from the Company’s reporting period.

The Company accounts for its interest in real estate joint ventures and other limited partnership interests in which it has virtually no influence over theinvestee’s operations at fair value. Changes in estimated fair value of these investments are included in net investment gains (losses). Because of the nature andstructure of these investments, they do not meet the characteristics of an equity security in accordance with applicable accounting standards.

The Company routinely evaluates its equity method investments for impairment. For equity method investees, the Company considers financial and otherinformation provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, indetermining whether an impairment has occurred.

Short-term Investments

Short-term investments include highly liquid securities and other investments with remaining maturities of one year or less, but greater than three months,at the time of purchase. Securities included within short-term investments are stated at estimated fair value, while other investments included within short-terminvestments are stated at amortized cost, which approximates estimated fair value.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Other Invested Assets

Other invested assets consist principally of the following:

• Freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below.

• Tax credit and renewable energy partnerships which derive a significant source of investment return in the form of income tax credits or other taxincentives. Where tax credits are guaranteed by a creditworthy third party, the investment is accounted for under the effective yield method. Otherwise,the investment is accounted for under the equity method. See Note 18 .

• Annuities funding structured settlement claims represent annuities funding claims assumed by the Company in its capacity as a structured settlementsassignment company. The annuities are stated at their contract value, which represents the present value of the future periodic claim payments to beprovided. The net investment income recognized reflects the amortization of discount of the annuity at its implied effective interest rate. See Note 3 .

• Direct financing leases net investment is equal to the minimum lease payments plus the unguaranteed residual value, less the unearned income. Income isdetermined by applying the pre-tax internal rate of return to the investment balance. The Company regularly reviews lease receivables for impairment.Certain direct financing leases are linked to inflation.

• Leveraged leases net investment is equal to the minimum lease payments plus the unguaranteed residual value, less the unearned income, and is recordednet of non-recourse debt. Income is determined by applying the leveraged lease’s estimated rate of return to the net investment in the lease in thoseperiods in which the net investment at the beginning of the period is positive. Leveraged leases derive investment returns in part from their income taxtreatment. The Company regularly reviews residual values for impairment.

• Investments in operating joint ventures that engage in insurance underwriting activities are accounted for under the equity method.

• Investments in Federal Home Loan Bank (“FHLB”) common stock are carried at redemption value and are considered restricted investments untilredeemed by the respective FHLB regional banks (“FHLBanks”).

• Funds withheld represent a receivable for amounts contractually withheld by ceding companies in accordance with reinsurance agreements. The Companyrecognizes interest on funds withheld at rates defined by the terms of the agreement which may be contractually specified or directly related to theunderlying investments.

Securities Lending and Repurchase Agreements

The Company accounts for securities lending transactions and repurchase agreements as financing arrangements and the associated liability is recorded atthe amount of cash received. Income and expenses associated with securities lending transactions and repurchase agreements are reported as investmentincome and investment expense, respectively, within net investment income.

Securities Lending

The Company enters into securities lending transactions, whereby blocks of securities are loaned to third parties, primarily brokerage firms andcommercial banks. The Company obtains collateral at the inception of the loan, usually cash, in an amount generally equal to 102% of the estimated fairvalue of the securities loaned, and maintains it at a level greater than or equal to 100% for the duration of the loan. Securities loaned under such transactionsmay be sold or re-pledged by the transferee. The Company is liable to return to the counterparties the cash collateral received. Security collateral on depositfrom counterparties in connection with securities lending transactions may not be sold or re-pledged, unless the counterparty is in default, and is notreflected on the Company’s financial statements. The Company monitors the estimated fair value of the securities loaned on a daily basis and additionalcollateral is obtained as necessary throughout the duration of the loan.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Repurchase Agreements

The Company participates in short-term repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company lendsfixed maturity securities and receives cash as collateral in an amount generally equal to 85% to 100% of the estimated fair value of the securities loaned atthe inception of the transaction. The Company monitors the estimated fair value of the collateral and the securities loaned throughout the duration of thetransaction and additional collateral is obtained as necessary. Securities loaned under such transactions may be sold or re-pledged by the transferee.

FHLB of Boston Advance Agreements

A subsidiary of the Company has entered into short-term advance agreements with the FHLB of Boston. Under these advance agreements, the subsidiarypledges fixed maturity securities AFS as collateral and receives cash, which is segregated and reinvested, primarily into fixed maturity securities AFS and cashequivalents. While the collateral management practices are unique to this program, these transactions are accounted for, have collateral maintenancerequirements and have restrictions on securities pledged similar to securities lending transactions, as described above. Securities pledged as collateral may notbe sold or re-pledged by the transferee.

Derivatives

Freestanding Derivatives

Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities atestimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under thesame master netting agreement.

Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settlewithin one year are included with the derivative’s carrying value in other invested assets or other liabilities.

If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fairvalue of the derivative are reported in net derivative gains (losses) except as follows:

Statement of Operations Presentation: Derivative:Policyholder benefits and claims • Economic hedges of variable annuity guarantees included in future policy

benefitsNet investment income • Economic hedges of equity method investments in joint ventures • All derivatives held in relation to trading portfolios • Derivatives held within Unit-linked investments

Hedge Accounting

To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective andstrategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes inestimated fair value of the hedging derivatives are as follows:

• Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change inestimated fair value of the hedged item attributable to the designated risk being hedged.

• Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) -effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings areaffected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses).

• Net investment in a foreign operation hedge - effectiveness in OCI, consistent with the translation adjustment for the hedged net investment in theforeign operation; ineffectiveness in net derivative gains (losses).

The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operationswithin interest income or interest expense to match the location of the hedged item. Accruals on derivatives in net investment hedges are recognized in OCI.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item andsets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used tomeasure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of thehedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship.Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations orestimates may have a material effect on the amount reported in net income.

The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changesin the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that thehedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument.

When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair valueor cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair valuerecognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted forchanges in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining lifeof the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded inOCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cashflows of the hedged item.

When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within twomonths of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognizedcurrently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of aforecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses).

In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes inits estimated fair value recognized in the current period as net derivative gains (losses) .

Embedded Derivatives

The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements thathave embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embeddedderivative is bifurcated from the host contract and accounted for as a freestanding derivative if:

• the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings;

• the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and

• a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument.

Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value aregenerally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from itshost contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period innet investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fairvalue, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract containsan embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guaranteefees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees andare reported in universal life and investment-type product policy fees.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

FairValue

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageousmarket for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and thetransaction (or entry) price will be the same at initial recognition.

Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily andregularly obtainable. When such unadjusted quoted prices are not available, estimated fair values are based on quoted prices in markets that are not active,quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are notdeterminable, unobservable inputs and/or adjustments to observable inputs requiring management’s judgment are used to determine the estimated fair value ofassets and liabilities.

Goodwill

Goodwill represents the future economic benefits arising from net assets acquired in a business combination that are not individually identified andrecognized. Goodwill is calculated as the excess of cost over the estimated fair value of such net assets acquired, is not amortized, and is tested for impairmentbased on a fair value approach at least annually, or more frequently if events or circumstances indicate that there may be justification for conducting an interimtest. The Company performs its annual goodwill impairment testing during the third quarter based upon data as of the close of the second quarter. Goodwillassociated with a business acquisition is not tested for impairment during the year the business is acquired unless there is a significant identified impairmentevent.

The impairment test is performed at the reporting unit level, which is the operating segment or a business one level below the operating segment, if discretefinancial information is prepared and regularly reviewed by management at that level. For purposes of goodwill impairment testing, if the carrying value of areporting unit exceeds its estimated fair value, there may be an indication of impairment. In such instances, the implied fair value of the goodwill is determinedin the same manner as the amount of goodwill that would be determined in a business combination. The excess of the carrying value of goodwill over theimplied fair value of goodwill would be recognized as an impairment and recorded as a charge against net income.

On an ongoing basis, the Company evaluates potential triggering events that may affect the estimated fair value of the Company’s reporting units to assesswhether any goodwill impairment exists. Deteriorating or adverse market conditions for certain reporting units may have a significant impact on the estimatedfair value of these reporting units and could result in future impairments of goodwill.

EmployeeBenefitPlans

Certain subsidiaries of MetLife, Inc. sponsor and/or administer various plans that provide defined benefit pension and other postretirement benefits coveringeligible employees. Measurement dates used for all of the subsidiaries’ defined benefit pension and other postretirement benefit plans correspond with the fiscalyear ends of sponsoring subsidiaries, which is December 31 for U.S. and non-U.S. subsidiaries.

The Company recognizes the funded status of each of its defined benefit pension and postretirement benefit plans, measured as the difference between thefair value of plan assets and the benefit obligation, which is the projected benefit obligation (“PBO”) for pension benefits and the accumulated postretirementbenefit obligation (“APBO”) for other postretirement benefits in other assets or other liabilities.

Actuarial gains and losses result from differences between the actual experience and the assumed experience on plan assets or PBO during a particularperiod and are recorded in accumulated OCI (“AOCI”). To the extent such gains and losses exceed 10% of the greater of the PBO or the estimated fair value ofplan assets, the excess is amortized into net periodic benefit costs, generally over the average projected future service years of the active employees. In addition,prior service costs (credit) are recognized in AOCI at the time of the amendment and then amortized to net periodic benefit costs over the average projectedfuture service years of the active employees.

Net periodic benefit costs are determined using management’s estimates and actuarial assumptions and are comprised of service cost, interest cost,settlement and curtailment costs, expected return on plan assets, amortization of net actuarial (gains) losses, and amortization of prior service costs (credit). Fairvalue is used to determine the expected return on plan assets.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

The subsidiaries also sponsor defined contribution plans for substantially all U.S. employees under which a portion of employee contributions is matched.Applicable matching contributions are made each payroll period. Accordingly, the Company recognizes compensation cost for current matching contributions.As all contributions are transferred currently as earned to the defined contribution plans, no liability for matching contributions is recognized on the balancesheets.

IncomeTax

MetLife, Inc. and its includable life insurance and non-life insurance subsidiaries file a consolidated U.S. federal income tax return in accordance with theprovisions of the Internal Revenue Code of 1986, as amended. Non-includable subsidiaries file either separate individual corporate tax returns or separateconsolidated tax returns.

The Company’s accounting for income taxes represents management’s best estimate of various events and transactions.

Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured atthe balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse.

The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax lawin the applicable tax jurisdiction. Valuation allowances are established against deferred tax assets when management determines, based on available information,that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowancesshould be established, as well as the amount of such allowances. When making such determination, the Company considers many factors, including:

• the nature, frequency, and amount of cumulative financial reporting income and losses in recent years;

• the jurisdiction in which the deferred tax asset was generated;

• the length of time that carryforward can be utilized in the various taxing jurisdictions;

• future taxable income exclusive of reversing temporary differences and carryforwards;

• future reversals of existing taxable temporary differences;

• taxable income in prior carryback years; and

• tax planning strategies.

The Company may be required to change its provision for income taxes when estimates used in determining valuation allowances on deferred tax assetssignificantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, the effect of changes in taxlaws, tax regulations, or interpretations of such laws or regulations, is recognized in net income tax expense (benefit) in the period of change.

The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authoritiesbefore any part of the benefit can be recorded on the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50%likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities andare charged to earnings in the period that such determination is made.

The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax expense.

On December 22, 2017, President Trump signed into law H.R.1, commonly referred to as the Tax Cuts and Jobs Act of 2017 (“U.S. Tax Reform”). SeeNote 18 for additional information on U.S. Tax Reform and related Staff Accounting Bulletin (“SAB”) 118 provisional amounts.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

LitigationContingencies

The Company is a defendant in a large number of litigation matters and is involved in a number of regulatory investigations. Given the large and/orindeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matterscould, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods. Liabilities areestablished when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Except as otherwise disclosed in Note 20 ,legal costs are recognized as incurred. On a quarterly and annual basis, the Company reviews relevant information with respect to liabilities for litigation,regulatory investigations and litigation-related contingencies to be reflected on the Company’s financial statements.

OtherAccountingPolicies

Stock-Based Compensation

The Company grants certain employees and directors stock-based compensation awards under various plans that are subject to specific vesting conditions.With the exception of performance shares granted in 2013 through 2018, and cash-payable awards, each of which are re-measured quarterly, the Companymeasures the cost of all stock-based transactions at fair value at grant date and recognizes it over the period during which a grantee must provide services inexchange for the award. Employees who meet certain age-and-service criteria receive payment or may exercise their awards regardless of ending employment.However, the award’s payment or exercisability takes place at the originally-scheduled time, i.e., is not accelerated. As a result, the award does not require theemployee to provide any substantive service after attaining those age-and-service criteria. Accordingly, the Company recognizes compensation expense relatedto stock-based awards from the beginning of the vesting to the earlier of the end of the vesting period or the date the employee attains the age-and-servicecriteria. The Company incorporates an estimation of future forfeitures of stock-based awards into the determination of compensation expense whenrecognizing expense over the requisite service period.

Cash and Cash Equivalents

The Company considers highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the dateof purchase to be cash equivalents. Securities included within cash equivalents are stated at estimated fair value, while other investments included within cashequivalents are stated at amortized cost, which approximates estimated fair value.

Property, Equipment, Leasehold Improvements and Computer Software

Property, equipment and leasehold improvements, which are included in other assets, are stated at cost, less accumulated depreciation and amortization.Depreciation is determined using the straight-line method over the estimated useful lives of the assets, as appropriate. The estimated life is generally 40 yearsfor company occupied real estate property, from one to 25 years for leasehold improvements, and from three to seven years for all other property andequipment. The cost basis of the property, equipment and leasehold improvements was $2.6 billion and $2.5 billion at December 31, 2018 and 2017 ,respectively. Accumulated depreciation and amortization of property, equipment and leasehold improvements was $1.2 billion and $1.1 billion atDecember 31, 2018 and 2017 , respectively. Related depreciation and amortization expense was $191 million , $207 million and $206 million for the yearsended December 31, 2018 , 2017 and 2016 , respectively.

Computer software, which is included in other assets, is stated at cost, less accumulated amortization. Purchased software costs, as well as certain internaland external costs incurred to develop internal-use computer software during the application development stage, are capitalized. Such costs are amortizedgenerally over a four -year period using the straight-line method. The cost basis of computer software was $3.1 billion and $2.8 billion at December 31, 2018and 2017 , respectively. Accumulated amortization of capitalized software was $2.2 billion and $2.0 billion at December 31, 2018 and 2017 , respectively.Related amortization expense was $276 million , $250 million and $208 million for the years ended December 31, 2018 , 2017 and 2016 , respectively.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Other Revenues

Other revenues primarily include fees related to service contracts from customers related to prepaid legal plans, administrative services-only (“ASO”)contracts, and investment management services. Substantially all of the revenue from the services is recognized over time as the applicable services areprovided or are made available to the customers. The revenue recognized includes variable consideration to the extent it is probable that a significant reversalwill not occur. In addition to the service fees, other revenues also include certain stable value fee and other miscellaneous revenues. These fees andmiscellaneous revenues are recognized as earned.

Policyholder Dividends

Policyholder dividends are approved annually by the insurance subsidiaries’ boards of directors. The aggregate amount of policyholder dividends isrelated to actual interest, mortality, morbidity and expense experience for the year, as well as management’s judgment as to the appropriate level of statutorysurplus to be retained by the insurance subsidiaries.

Foreign Currency

Assets, liabilities and operations of foreign affiliates and subsidiaries are recorded based on the functional currency of each entity. The determination ofthe functional currency is made based on the appropriate economic and management indicators. For most of the Company’s foreign operations, the localcurrency is the functional currency. For certain other foreign operations, such as Japan, the local currency and one or more other currencies qualify asfunctional currencies. Assets and liabilities of foreign affiliates and subsidiaries are translated from the functional currency to U.S. dollars at the exchangerates in effect at each year-end and revenues and expenses are translated at the average exchange rates during the year. The resulting translation adjustmentsare charged or credited directly to OCI, net of applicable taxes. Gains and losses from foreign currency transactions, including the effect of re-measurement ofmonetary assets and liabilities to the appropriate functional currency, are reported as part of net investment gains (losses) in the period in which they occur.

Earnings Per Common Share

Basic earnings per common share are computed based on the weighted average number of common shares, or their equivalent, outstanding during theperiod. Diluted earnings per common share include the dilutive effect of the assumed exercise or issuance of stock-based awards using the treasury stockmethod. Under the treasury stock method, exercise or issuance of stock-based awards is assumed to occur with the proceeds used to purchase common stock atthe average market price for the period. The difference between the number of shares assumed issued and number of shares assumed purchased represents thedilutive shares.

RecentAccountingPronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASBAccounting Standards Codification. The Company considers the applicability and impact of all ASUs. The following tables provide a description of new ASUsissued by the FASB and the impact of the adoption on the Company’s consolidated financial statements.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

AdoptionofNewAccountingPronouncements

Except as noted below, the ASUs adopted by the Company effective January 1, 2018 did not have a material impact on its consolidated financial statements.

Standard DescriptionEffective Date and Method of

Adoption Impact on Financial StatementsASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic220): Reclassification of Certain TaxEffects from Accumulated OtherComprehensive Income

The new guidance allows a reclassification of AOCI toretained earnings for stranded tax effects resulting fromthe U.S. Tax Reform. Due to the change in corporate taxrates resulting from the U.S. Tax Reform, the Companyreported stranded tax effects in AOCI related tounrealized gains and losses on AFS securities,cumulative foreign translation adjustments and deferredcosts on pension benefit plans.

January 1, 2018, the Companyapplied the ASU in the periodof adoption.

The adoption of this guidance resulted in the release ofstranded tax effects in AOCI resulting from the U.S. TaxReform by decreasing retained earnings as of January 1,2018 by $1.2 billion with a corresponding increase toAOCI. The Company’s accounting policy for the releaseof stranded tax effects in AOCI is on an aggregateportfolio basis.

ASU 2016-01 , Financial Instruments —Overall (Subtopic 825-10): Recognitionand Measurement of Financial Assets andFinancial Liabilities , as clarified andamended by ASU 2018-03, TechnicalCorrections and Improvements toFinancial Instruments-Overall (Subtopic825-10): Recognition and Measurement ofFinancial Assets and Financial Liabilities.

The new guidance changed the previous accountingguidance related to (i) the classification andmeasurement of certain equity investments, (ii) thepresentation of changes in the fair value of financialliabilities measured under the FVO that are due toinstrument-specific credit risk, and (iii) certaindisclosures associated with the fair value of financialinstruments. There is no longer a requirement to assessequity securities for impairment since such securities arenow measured at fair value through net income.Additionally, there is no longer a requirement to assessequity securities for embedded derivatives requiringbifurcation.

January 1, 2018, the Companyadopted, using a modifiedretrospective approach.

The adoption of this guidance resulted in a $328 million,net of income tax, increase to retained earnings largelyoffset by a decrease to AOCI that was primarilyattributable to $1.7 billion of equity securities previouslyclassified and measured as equity securities AFS. AtDecember 31, 2017, equity securities of $16.0 billionprimarily associated with Unit-linked investments wereaccounted for using the FVO and therefore wereunaffected by the new guidance. The Company hasincluded the required disclosures related to equitysecurities AFS within Note 8.

ASU 2014-09, Revenue from Contractswith Customers (Topic 606 )

The new guidance supersedes nearly all existing revenuerecognition guidance under GAAP. However, it does notimpact the accounting for insurance and investmentcontracts within the scope of FASB AccountingStandard Codification Topic 944, Financial Services -Insurance , leases, financial instruments and certainguarantees. For those contracts that are impacted, thenew guidance requires an entity to recognize revenueupon the transfer of promised goods or services tocustomers in an amount that reflects the consideration towhich the entity expects to be entitled, in exchange forthose goods or services.

January 1, 2018, the Companyadopted, using a modifiedretrospective approach.

The adoption of the guidance did not have a materialimpact on the Company’s consolidated financialstatements other than expanded disclosures in Note 16.

Other

Effective January 16, 2018, the London Clearing House (“LCH”) amended its rulebook, resulting in the characterization of variation margin transfers assettlement payments, as opposed to adjustments to collateral. These amendments impacted the accounting treatment of the Company’s centrally cleared derivatives,for which the LCH serves as the central clearing party. As of the effective date, the application of the amended rulebook reduced gross derivative assets by $369million , gross derivative liabilities by $203 million , accrued investment income by $14 million , collateral receivables recorded within premiums, reinsurance andother receivables by $184 million , and collateral payables recorded within payables for collateral under securities loaned and other transactions by $365 million .The application of the amended rulebook increased accrued investment expense recorded within other liabilities by $1 million .

Effective January 3, 2017, the Chicago Mercantile Exchange (“CME”) amended its rulebook, resulting in the characterization of variation margin transfers assettlement payments, as opposed to adjustments to collateral. These amendments impacted the accounting treatment of the Company’s centrally cleared derivativesfor which the CME serves as the central clearing party. As of the effective date, the application of the amended rulebook reduced gross derivative assets by$1.8 billion , gross derivative liabilities by $2.0 billion , accrued investment income by $101 million , accrued investment expense recorded within other liabilitiesby $14 million , collateral receivables recorded within premiums, reinsurance and other receivables by $991 million , and collateral payables recorded withinpayables for collateral under securities loaned and other transactions by $816 million .

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

FutureAdoptionofNewAccountingPronouncements

ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company’s consolidatedfinancial statements. ASUs issued but not yet adopted as of December 31, 2018 that are being assessed and may or may not have a material impact on theCompany’s consolidated financial statements are summarized in the table below.

Standard DescriptionEffective Date and Method

of Adoption Impact on Financial StatementsASU 2018-17, Consolidation (Topic 810):Targeted Improvements to Related PartyGuidance for Variable Interest Entities

The new guidance provides that indirect interests heldthrough related parties in common control arrangementsshould be considered on a proportional basis fordetermining whether fees paid to decisionmakers andservice providers are variable interests.

January 1, 2020, to beapplied retrospectively with acumulative effect adjustmentto retained earnings at thebeginning of the earliestperiod presented.

The Company does not expect the adoption to have amaterial impact on its consolidated financial statements.

ASU 2018-16, Derivatives and Hedging(Topic 815): Inclusion of the SecuredOvernight Financing Rate (SOFR) OvernightIndex Swap (OIS) Rate as a BenchmarkInterest Rate for Hedge AccountingPurposes

The new guidance permits the use of the overnight indexswap rate based on the Secured Overnight FinancingRate as a U.S. benchmark interest rate for hedgeaccounting purposes under Topic 815.

January 1, 2019, to beapplied prospectively forqualifying new orredesignated hedgingrelationships entered intoafter January 1, 2019.

The Company does not expect the adoption to have amaterial impact on its consolidated financial statements.

ASU 2018-15, Intangibles—Goodwill andOther—Internal-Use Software (Subtopic350-40): Customer’s Accounting forImplementation Costs Incurred in a CloudComputing Arrangement That Is a ServiceContract

The new guidance requires a customer in a cloudcomputing arrangement that is a service contract tofollow the internal-use software guidance to determinewhich implementation costs to capitalize as an asset andwhich costs to expense as incurred. Implementationcosts that are capitalized under the new guidance arerequired to be amortized over the term of the hostingarrangement, beginning when the module or componentof the hosting arrangement is ready for its intended use.

January 1, 2020. The newguidance can be appliedeither prospectively toeligible costs incurred on orafter the guidance is firstapplied, or retrospectively toall periods presented.

The Company is currently evaluating the impact of thenew guidance on its consolidated financial statements.

ASU 2018-14, Compensation—RetirementBenefits—Defined Benefit Plans—General(Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements forDefined Benefit Plans

The new guidance removes certain disclosures that nolonger are considered cost beneficial, clarifies thespecific requirements of disclosures, and adds disclosurerequirements identified as relevant for employers thatsponsor defined benefit pension or other postretirementplans.

December 31, 2020, to beapplied on a retrospectivebasis to all periods presented(with early adoptionpermitted).

The Company is currently evaluating the impact of thenew guidance on its consolidated financial statements.

ASU 2018-13, Fair Value Measurement(Topic 820): Disclosure Framework—Changes to the Disclosure Requirements forFair Value Measurement

The new guidance modifies the disclosure requirementson fair value by removing some requirements, modifyingothers, adding changes in unrealized gains and lossesincluded in OCI for recurring Level 3 fair valuemeasurements, and under certain circumstances,providing the option to disclose certain otherquantitative information with respect to significantunobservable inputs in lieu of a weighted average.

January 1, 2020.Amendments related tochanges in unrealized gainsand losses, the range andweighted average ofsignificant unobservableinputs used to develop Level3 fair value measurements,and the narrative descriptionof measurement uncertaintyshould be appliedprospectively. All otheramendments should beapplied retrospectively.

As of December 31, 2018, the Company early adoptedthe provisions of the guidance that removed therequirements relating to transfers between fair valuehierarchy levels and certain disclosures about valuationprocesses for Level 3 fair value measurements. TheCompany will adopt the remainder of the new guidanceat the effective date, and is currently evaluating theimpact of those changes on its consolidated financialstatements.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Standard DescriptionEffective Date and Method

of Adoption Impact on Financial StatementsASU 2018-12, Financial Services—Insurance (Topic 944): TargetedImprovements to the Accounting for Long-Duration Contracts

The new guidance (i) prescribes the discount rate to beused in measuring the liability for future policy benefitsfor traditional and limited payment long-durationcontracts, and requires assumptions for those liabilityvaluations to be updated after contract inception,(ii) requires more market-based product guarantees oncertain separate account and other account balance long-duration contracts to be accounted for at fair value,(iii) simplifies the amortization of DAC for virtually alllong-duration contracts, and (iv) introduces certainfinancial statement presentation requirements, as well assignificant additional quantitative and qualitativedisclosures.

January 1, 2021, to beapplied retrospectively toJanuary 1, 2019 (with earlyadoption permitted).

The Company has started its implementation efforts andis currently evaluating the impact of the new guidance.Given the nature and extent of the required changes to asignificant portion of the Company’s operations, theadoption of this standard is expected to have a materialimpact on its consolidated financial statements.

ASU 2017-12, Derivatives and Hedging(Topic 815): Targeted Improvements toAccounting for Hedging Activities

The new guidance simplifies the application of hedgeaccounting in certain situations and amends the hedgeaccounting model to enable entities to better portray theeconomics of their risk management activities in theirfinancial statements.

January 1, 2019, to beapplied on a modifiedretrospective basis through acumulative effect adjustmentto retained earnings.

Upon adoption, the Company will make certain changesto its assessment of hedge effectiveness for fair valuehedging relationships, and the Company will alsoreclassify hedge ineffectiveness for cash flow hedgingrelationships existing as of the adoption date, which waspreviously recorded to earnings, to AOCI. The estimatedimpact of adoption is a decrease to retained earnings ofless than $250 million.

ASU 2017-08, Receivables —Nonrefundable Fees and Other Costs(Subtopic 310-20), Premium Amortization onPurchased Callable Debt Securities

The new guidance shortens the amortization period forcertain callable debt securities held at a premium andrequires the premium to be amortized to the earliest calldate. However, the new guidance does not require anaccounting change for securities held at a discountwhose discount continues to be amortized to maturity.

January 1, 2019, to beapplied on a modifiedretrospective basis through acumulative effect adjustmentto retained earnings.

The adoption of the new guidance will not have amaterial impact on the Company’s consolidatedfinancial statements.

ASU 2017-04, Intangibles—Goodwill andOther (Topic 350): Simplifying the Test forGoodwill Impairment

The new guidance simplifies the current two-stepgoodwill impairment test by eliminating Step 2 of thetest. The new guidance requires a one-step impairmenttest in which an entity compares the fair value of areporting unit with its carrying amount and recognizesan impairment charge for the amount by which thecarrying amount exceeds the reporting unit’s fair value,if any.

January 1, 2020, to beapplied on a prospectivebasis. Early adoption ispermitted for interim orannual goodwill impairmenttests performed on testingdates after January 1, 2017.

The new guidance will reduce the complexity involvedwith the evaluation of goodwill for impairment. Theimpact of the new guidance will depend on the outcomesof future goodwill impairment tests.

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Notes to the Consolidated Financial Statements — (continued)

1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)

Standard DescriptionEffective Date and Method

of Adoption Impact on Financial StatementsASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement ofCredit Losses on Financial Instruments, asclarified and amended by ASU 2018-19 ,Codification Improvements to Topic 326,Financial Instruments—Credit Losses

This new guidance replaces the incurred loss impairmentmethodology with one that reflects expected creditlosses. The measurement of expected credit lossesshould be based on historical loss information, currentconditions, and reasonable and supportable forecasts.The new guidance requires that an OTTI on a debtsecurity will be recognized as an allowance goingforward, such that improvements in expected future cashflows after an impairment will no longer be reflected asa prospective yield adjustment through net investmentincome, but rather a reversal of the previous impairmentand recognized through realized investment gains andlosses. The guidance also requires enhanced disclosures.In November 2018, the FASB issued ASU 2018-19,clarifying that receivables arising from operating leasesshould be accounted for in accordance with Topic 842,Leases. The Company has assessed the asset classesimpacted by the new guidance and is currently assessingthe accounting and reporting system changes that will berequired to comply with the new guidance.

January 1, 2020. Forsubstantially all financialassets, the ASU is to beapplied on a modifiedretrospective basis through acumulative effect adjustmentto retained earnings. Forpreviously impaired debtsecurities and certain debtsecurities acquired withevidence of credit qualitydeterioration sinceorigination, the new guidanceis to be appliedprospectively.

The Company believes that the most significant impactupon adoption will be to its mortgage loan investments.The Company is currently evaluating the impact of thenew guidance on its consolidated financial statements.

ASU 2016-02, Leases (Topic 842), asclarified and amended by ASU 2018-10, Codification Improvements to Topic 842,Leases, ASU 2018-11 , Leases (Topic 842):Targeted Improvements, and ASU 2018-20, Leases (Topic 842): Narrow-ScopeImprovements for Lessors

The new guidance requires a lessee to recognize assetsand liabilities for leases with lease terms of more than12 months. Leases would be classified as finance oroperating leases and both types of leases will berecognized on the balance sheet. Lessor accounting willremain largely unchanged from current guidance exceptfor certain targeted changes. The new guidance will alsorequire new qualitative and quantitative disclosures. InJuly 2018, two amendments to the new guidance wereissued. The amendments provide the option to adopt thenew guidance prospectively without adjustingcomparative periods. Also, the amendments providelessors with a practical expedient not to separate leaseand non-lease components for certain operating leases.In December 2018, an amendment was issued to clarifylessor accounting relating to taxes, certain lessor’s costsand variable payments related to both lease and non-lease components. The Company will adopt the newguidance and related amendments on January 1, 2019and expects to elect certain practical expedientspermitted under the transition guidance. In addition, theCompany will elect the prospective transition option andrecognize a cumulative effect adjustment to the openingbalance of retained earnings in the period of adoption.The Company has been executing an integratedimplementation plan which includes a multi-functionalworking group with a project governance structure toaddress any resource, system, data and process gapsrelated to the implementation of the new standard. TheCompany is currently integrating a lease accountingtechnology solution and finalizing updated reportingprocesses and additional internal controls to facilitatecompliance with the new guidance.

January 1, 2019, to beapplied on a modifiedretrospective basis using theoptional transition methodwith a cumulative effectadjustment recorded atJanuary 1, 2019.

The Company believes the most significant changesrelate to (i) the recognition of new right of use assets andlease liabilities on the consolidated balance sheet for realestate operating leases; and (ii) the recognition ofdeferred gains associated with previous sale-leasebacktransactions as a cumulative effect adjustment toretained earnings. On adoption, the Company willrecognize additional operating liabilities, withcorresponding right of use assets of the same amountadjusted for prepaid/deferred rent, unamortized initialdirect costs and potential impairment of right of useassets based on the present value of the remainingminimum rental payments. These assets and liabilitieswill represent less than 1% of the Company’s total assetsand total liabilities. The adoption will not have amaterial impact on its consolidated financial statements.

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Notes to the Consolidated Financial Statements — (continued)

2. Segment Information

MetLife is organized into five segments: U.S.; Asia; Latin America; EMEA; and MetLife Holdings. In addition, the Company reports certain of its results ofoperations in Corporate & Other.

U.S.

The U.S. segment offers a broad range of protection products and services aimed at serving the financial needs of customers throughout their lives. Theseproducts are sold to corporations and their respective employees, other institutions and their respective members, as well as individuals. The U.S. segment isorganized into three businesses: Group Benefits, Retirement and Income Solutions (“RIS”) and Property & Casualty.

• The Group Benefits business offers life, dental, group short- and long-term disability, individual disability, accidental death and dismemberment, visionand accident & health coverages, as well as prepaid legal plans. This business also sells ASO arrangements to some employers.

• The RIS business offers a broad range of life and annuity-based insurance and investment products, including stable value and pension risk transferproducts, institutional income annuities, tort settlements, and capital markets investment products, as well as solutions for funding postretirement benefitsand company-, bank- or trust-owned life insurance.

• The Property & Casualty business offers personal and commercial lines of property and casualty insurance, including private passenger automobile,homeowners’ and personal excess liability insurance. In addition, Property & Casualty offers to small business owners property, liability and businessinterruption insurance.

Asia

The Asia segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respective employees, whichinclude whole and term life, endowments, universal and variable life, accident & health insurance and fixed and variable annuities.

LatinAmerica

The Latin America segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respectiveemployees, which include life insurance, retirement and savings products, accident & health insurance and credit insurance.

EMEA

The EMEA segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respective employees,which include life insurance, accident & health insurance, retirement and savings products and credit insurance.

MetLifeHoldings

The MetLife Holdings segment consists of operations relating to products and businesses that the Company no longer actively markets in the United States,such as variable, universal, term and whole life insurance, variable, fixed and index-linked annuities, and long-term care insurance, as well as the assumed variableannuity guarantees from the Company’s former operating joint venture in Japan.

Corporate&Other

Corporate & Other contains the excess capital, as well as certain charges and activities, not allocated to the segments, including external integration anddisposition costs, internal resource costs for associates committed to acquisitions and dispositions, enterprise-wide strategic initiative restructuring charges andvarious start-up and developing businesses (including the investment management business through which the Company, as a manager of assets such as globalfixed income and real estate, provides differentiated investment solutions to institutional investors worldwide). Additionally, Corporate & Other includes run-offbusinesses. Corporate & Other also includes interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certainlegal proceedings and income tax audit issues. In addition, Corporate & Other includes the elimination of intersegment amounts, which generally relate to affiliatedreinsurance, investment expenses and intersegment loans, which bear interest rates commensurate with related borrowings. As a result of the Separation, for theyear ended 2016, Corporate & Other includes corporate overhead costs previously allocated to the former Brighthouse Financial segment.

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Notes to the Consolidated Financial Statements — (continued)

2. Segment Information (continued)

FinancialMeasuresandSegmentAccountingPolicies

Adjusted earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjustedearnings is also the Company’s GAAP measure of segment performance and is reported below. Adjusted earnings should not be viewed as a substitute for income(loss) from continuing operations, net of income tax. The Company believes the presentation of adjusted earnings, as the Company measures it for managementpurposes, enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax.

The financial measures of adjusted revenues and adjusted expenses focus on the Company’s primary businesses principally by excluding the impact of marketvolatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, thesemeasures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MetLife but do not meet thediscontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also includes the net impact of transactions with exitedbusinesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do notmeet the criteria to be included in results of discontinued operations under GAAP. In addition, for the year ended December 31, 2016, adjusted revenues andadjusted expenses exclude the financial impact of converting the Company’s Japan operations to calendar year-end reporting without retrospective application ofthis change to prior periods and is referred to as lag elimination. Adjusted revenues also excludes net investment gains (losses) and net derivative gains (losses).Adjusted expenses also excludes goodwill impairments.

The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues:

• Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and netderivative gains (losses) and certain variable annuity GMIB fees (“GMIB fees”);

• Net investment income: (i) includes earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that areused to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) excludes post-tax adjusted earnings adjustments relating toinsurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to contractholder-directed equity securities,(iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP and (v) includes distributions of profits fromcertain other limited partnership interests that were previously accounted for under the cost method, but are now accounted for at estimated fair value,where the change in estimated fair value is recognized in net investment gains (losses) under GAAP; and

• Other revenues is adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided undertransition service agreements (“TSA fees”).

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Notes to the Consolidated Financial Statements — (continued)

2. Segment Information (continued)

The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:

• Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains(losses) and net derivative gains (losses), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments andamounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass throughadjustments, (iii) benefits and hedging costs related to GMIBs (“GMIB costs”), and (iv) market value adjustments associated with surrenders orterminations of contracts (“Market value adjustments”);

• Interest credited to policyholder account balances includes adjustments for earned income on derivatives and amortization of premium on derivatives thatare hedges of policyholder account balances but do not qualify for hedge accounting treatment and excludes certain amounts related to net investmentincome earned on contractholder-directed equity securities;

• Amortization of DAC and VOBA excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB fees andGMIB costs and (iii) Market value adjustments;

• Amortization of negative VOBA excludes amounts related to Market value adjustments;

• Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and

• Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) acquisition,integration and other costs. Other expenses includes TSA fees.

Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during themeasurement period under GAAP business combination accounting guidance.

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’seffective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certaintax reforms.

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the years endedDecember 31, 2018 , 2017 and 2016 and at December 31, 2018 and 2017 . The segment accounting policies are the same as those used to prepare the Company’sconsolidated financial statements, except for adjusted earnings adjustments as defined above. In addition, segment accounting policies include the method ofcapital allocation described below.

Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon whichcapital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in the Company’s business.

The Company’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standardsand consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistentrisk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standardmethod for the inclusion of diversification benefits among risk types. The Company’s management is responsible for the ongoing production and enhancement ofthe economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards.

Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact theCompany’s consolidated net investment income, income (loss) from continuing operations, net of income tax, or adjusted earnings.

Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Othercosts are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensationcosts incurred by each segment; and (iii) cost estimates included in the Company’s product pricing.

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Notes to the Consolidated Financial Statements — (continued)

2. Segment Information (continued)

Year Ended December 31, 2018 U.S. Asia LatinAmerica EMEA MetLife

Holdings Corporate& Other Total Adjustments Total

Consolidated

(In millions)

Revenues

Premiums $ 28,186 $ 6,766 $ 2,760 $ 2,131 $ 3,879 $ 118 $ 43,840 $ — $ 43,840

Universal life and investment-type product policy fees 1,053 1,630 1,050 431 1,218 — 5,382 120 5,502

Net investment income 6,977 3,317 1,239 293 5,379 178 17,383 (1,217) 16,166

Other revenues 821 51 35 66 250 333 1,556 324 1,880

Net investment gains (losses) — — — — — — — (298) (298)

Net derivative gains (losses) — — — — — — — 851 851

Total revenues 37,037 11,764 5,084 2,921 10,726 629 68,161 (220) 67,941

Expenses

Policyholder benefits and claims and policyholder dividends 27,765 5,326 2,602 1,127 6,833 80 43,733 174 43,907

Interest credited to policyholder account balances 1,790 1,465 394 100 944 — 4,693 (680) 4,013

Capitalization of DAC (449) (1,915) (377) (468) (36) (8) (3,253) (1) (3,254)

Amortization of DAC and VOBA 477 1,302 209 434 332 6 2,760 215 2,975

Amortization of negative VOBA — (39) (1) (15) — — (55) (1) (56)

Interest expense on debt 12 — 6 — 9 1,032 1,059 63 1,122

Other expenses 3,902 3,840 1,421 1,378 1,081 907 12,529 398 12,927

Total expenses 33,497 9,979 4,254 2,556 9,163 2,017 61,466 168 61,634

Provision for income tax expense (benefit) 736 548 238 88 308 (825) 1,093 86 1,179

Adjusted earnings $ 2,804 $ 1,237 $ 592 $ 277 $ 1,255 $ (563) 5,602

Adjustments to:

Total revenues (220)

Total expenses (168)

Provision for income tax (expense) benefit (86)

Income (loss) from continuing operations, net of income tax $ 5,128 $ 5,128

At December 31, 2018 U.S. Asia (1) LatinAmerica EMEA MetLife

Holdings Corporate& Other Total

(In millions)

Total assets $ 248,174 $ 146,278 $ 70,417 $ 27,829 $ 166,872 $ 27,968 $ 687,538Separate account assets $ 71,436 $ 8,849 $ 47,757 $ 5,306 $ 42,208 $ — $ 175,556Separate account liabilities $ 71,436 $ 8,849 $ 47,757 $ 5,306 $ 42,208 $ — $ 175,556__________________

(1) Total assets includes $120.0 billion of assets from the Japan operations which represents 17% of total consolidated assets.

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Notes to the Consolidated Financial Statements — (continued)

2. Segment Information (continued)

Year Ended December 31, 2017 U.S. Asia LatinAmerica EMEA MetLife

Holdings Corporate& Other Total Adjustments Total

Consolidated

(In millions)

Revenues

Premiums $ 23,632 $ 6,755 $ 2,693 $ 2,061 $ 4,144 $ 54 $ 39,339 $ (347) $ 38,992

Universal life and investment-type product policy fees 1,012 1,584 1,044 405 1,361 1 5,407 103 5,510

Net investment income 6,396 2,985 1,219 309 5,607 28 16,544 819 17,363

Other revenues 806 43 32 58 244 271 1,454 (113) 1,341

Net investment gains (losses) — — — — — — — (308) (308)

Net derivative gains (losses) — — — — — — — (590) (590)

Total revenues 31,846 11,367 4,988 2,833 11,356 354 62,744 (436) 62,308

Expenses

Policyholder benefits and claims and policyholder dividends 23,627 5,075 2,535 1,077 7,000 26 39,340 204 39,544

Interest credited to policyholder account balances 1,474 1,351 369 100 1,018 1 4,313 1,294 5,607

Capitalization of DAC (458) (1,710) (364) (414) (82) (8) (3,036) 34 (3,002)

Amortization of DAC and VOBA 459 1,300 224 357 302 6 2,648 33 2,681

Amortization of negative VOBA — (111) (1) (19) — — (131) (9) (140)

Interest expense on debt 11 — 5 — 24 1,105 1,145 (16) 1,129

Other expenses 3,682 3,613 1,479 1,376 1,365 894 12,409 544 12,953

Total expenses 28,795 9,518 4,247 2,477 9,627 2,024 56,688 2,084 58,772

Provision for income tax expense (benefit) 1,024 620 156 59 547 (688) 1,718 (3,188) (1,470)

Adjusted earnings $ 2,027 $ 1,229 $ 585 $ 297 $ 1,182 $ (982) 4,338

Adjustments to:

Total revenues (436)

Total expenses (2,084)

Provision for income tax (expense) benefit 3,188

Income (loss) from continuing operations, net of income tax $ 5,006 $ 5,006

At December 31, 2017 U.S. Asia (1) Latin America EMEA MetLife

Holdings Corporate & Other Total

(In millions)

Total assets $ 255,428 $ 136,928 $ 79,670 $ 30,500 $ 183,160 $ 34,206 $ 719,892Separate account assets $ 81,243 $ 10,032 $ 56,218 $ 5,975 $ 51,533 $ — $ 205,001Separate account liabilities $ 81,243 $ 10,032 $ 56,218 $ 5,975 $ 51,533 $ — $ 205,001__________________

(1) Total assets includes $111.0 billion of assets from the Japan operations which represents 15% of total consolidated assets.

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Notes to the Consolidated Financial Statements — (continued)

2. Segment Information (continued)

Year Ended December 31, 2016 U.S. Asia LatinAmerica EMEA MetLife

Holdings Corporate& Other Total Adjustments Total

Consolidated

(In millions)

Revenues

Premiums $ 21,501 $ 6,902 $ 2,529 $ 2,027 $ 4,506 $ 40 $ 37,505 $ (303) $ 37,202

Universal life and investment-type product policy fees 989 1,488 1,025 391 1,436 2 5,331 152 5,483

Net investment income 6,206 2,707 1,084 318 5,944 178 16,437 353 16,790

Other revenues 784 61 34 73 581 110 1,643 42 1,685

Net investment gains (losses) — — — — — — — 317 317

Net derivative gains (losses) — — — — — — — (690) (690)

Total revenues 29,480 11,158 4,672 2,809 12,467 330 60,916 (129) 60,787

Expenses

Policyholder benefits and claims and policyholder dividends 21,591 5,211 2,443 1,067 7,523 41 37,876 (295) 37,581

Interest credited to policyholder account balances 1,302 1,298 328 112 1,042 6 4,088 1,088 5,176

Capitalization of DAC (471) (1,668) (321) (403) (281) (7) (3,151) (1) (3,152)

Amortization of DAC and VOBA 471 1,236 184 408 736 8 3,043 (325) 2,718

Amortization of negative VOBA — (208) (1) (13) — — (222) (47) (269)

Interest expense on debt 9 — 2 — 57 1,139 1,207 (50) 1,157

Other expenses 3,706 3,586 1,336 1,323 2,392 597 12,940 355 13,295

Total expenses 26,608 9,455 3,971 2,494 11,469 1,784 55,781 725 56,506

Provision for income tax expense (benefit) 976 479 158 42 292 (948) 999 (306) 693

Adjusted earnings $ 1,896 $ 1,224 $ 543 $ 273 $ 706 $ (506) 4,136

Adjustments to:

Total revenues (129)

Total expenses (725)

Provision for income tax (expense) benefit 306

Income (loss) from continuing operations, net of income tax $ 3,588 $ 3,588

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Notes to the Consolidated Financial Statements — (continued)

2. Segment Information (continued)

The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of theCompany’s segments, as well as Corporate & Other:

Years Ended December 31,

2018 2017 2016 (In millions)Life insurance $ 20,550 $ 20,330 $ 20,436Accident & health insurance 14,489 14,002 14,128Annuities 10,990 6,999 5,552Property and casualty insurance 3,651 3,613 3,560Other 1,542 899 694

Total $ 51,222 $ 45,843 $ 44,370

The following table presents total premiums, universal life and investment-type product policy fees and other revenues associated with the Company’s U.S.and foreign operations:

Years Ended December 31,

2018 2017 2016 (In millions)U.S. $ 36,078 $ 30,971 $ 29,166Foreign: Japan 6,435 6,444 7,089Other 8,709 8,428 8,115

Total $ 51,222 $ 45,843 $ 44,370

Revenues derived from one U.S. segment customer were $6.0 billion for the year ended December 31, 2018 , which represented 12% of consolidatedpremiums, universal life and investment-type product policy fees and other revenues. The revenue was from a single premium received for a pension risk transfer.Revenues derived from any other customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and otherrevenues for the years ended December 31, 2018 , 2017 and 2016 .

3. Dispositions

DispositionofMetLifeAfore,S.A.deC.V.

In October 2017, the Company entered into a definitive agreement to sell MetLife Afore, S.A. de C.V. (“MetLife Afore”), its pension fund managementbusiness in Mexico. As a result of the agreement, a loss of $98 million ( $73 million , net of income tax), which includes a reduction to goodwill of $16 million ,was recorded for the year ended December 31, 2017 and is reflected within net investment gains (losses).

At December 31, 2017, MetLife Afore reported $3.9 billion and $3.7 billion of total assets and total liabilities, respectively, which primarily consisted of $3.7billion of separate account assets and liabilities. MetLife Afore’s results of operations are included in continuing operations and are reported in the Latin Americasegment. The transaction closed on February 20, 2018.

SeparationofBrighthouse

2018SaleofFVOBrighthouseCommonStock

In June 2018, the Company sold FVO Brighthouse Common Stock in exchange for $944 million aggregate principal amount of MetLife, Inc. senior notes,which MetLife, Inc. canceled. The Company recorded $327 million of mark-to-market and disposition losses on the FVO Brighthouse Common Stock to netinvestment gains (losses) for the year ended December 31, 2018 . At December 31, 2018 , the Company no longer held any shares of Brighthouse Financial, Inc.for its own account; however, certain insurance company separate accounts managed by the Company held shares of Brighthouse Financial, Inc. See Note 12 forfurther information on this transaction.

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Notes to the Consolidated Financial Statements — (continued)

3. Dispositions (continued)

2017SeparationofBrighthouse

In January 2016, MetLife, Inc. announced its plan to separate a substantial portion of its former Retail segment, as well as certain portions of its formerCorporate Benefit Funding segment and Corporate & Other. MetLife, Inc. subsequently re-segmented the business to be separated and rebranded it as“Brighthouse Financial.” On July 6, 2017, MetLife, Inc. announced that the U.S. Securities and Exchange Commission (“SEC”) declared Brighthouse Financial,Inc.’s registration statement on Form 10 effective. Additionally, all required state regulatory approvals were granted.

On August 4, 2017, MetLife, Inc. completed the Separation. MetLife, Inc. common shareholders received a distribution of one share of BrighthouseFinancial, Inc. common stock for every 11 shares of MetLife, Inc. common stock they owned as of 5:00 p.m., New York City time, on the July 19, 2017 recorddate. Shareholders of MetLife, Inc. who owned less than 11 shares of common stock, or others who would have otherwise received fractional shares, receivedcash. MetLife, Inc. distributed 96,776,670 of the 119,773,106 shares of Brighthouse Financial, Inc. common stock outstanding, representing approximately80.8% of those shares. Certain MetLife affiliates hold MetLife, Inc. common stock and, as a result, participated in the distribution.

MetLife, Inc. retained the remaining ownership interest of 22,996,436 shares, or 19.2% , of Brighthouse Financial, Inc. common stock outstanding andrecognized its investment in Brighthouse Financial, Inc. common stock based on the NASDAQ reported market price. The Company elected to record theinvestment under the FVO as an observable measure of estimated fair value that was aligned with the Company’s intent to divest of the retained shares as soon aspracticable. Subsequent changes in estimated fair value of the investment were recorded to net investment gains (losses). FVO Brighthouse Common Stock atDecember 31, 2017 was $1.3 billion reported within FVO Securities. The Company recorded a $1,016 million mark-to-market loss on its retained investment inBrighthouse Financial, Inc. to net investment gains (losses) at the Separation date and an additional $95 million loss to net investment gains (losses) for thechange in Brighthouse Financial, Inc.’s common stock share price from the Separation date to December 31, 2017 .

The loss recognized in 2017 in connection with the Separation was $1,302 million , net of income tax, which included: (i) a $1,016 million loss onMetLife’s retained investment in Brighthouse Financial, Inc., (ii) a $42 million net tax charge and (iii) a $306 million charge, net of income tax, for transactioncosts, partially offset by a $61 million gain, net of income tax, for previously deferred intercompany gains realized upon Separation. The $42 million net taxcharge is comprised of a $1,093 million tax separation agreement charge offset by $1,051 million of Separation tax benefits. Of the $1,302 million total loss, netof income tax, a $131 million loss, net of income tax, was reported within continuing operations as (i) a $693 million net investment loss, (ii) a $147 millioncharge within policyholder benefits and claims, (iii) a $218 million charge within other expenses, and (iv) a $927 million income tax benefit. The remaining$1,171 million loss was reported within discontinued operations, which primarily includes a tax-related charge.

The Company incurred pre-tax Separation-related transaction costs of $470 million for the year ended December 31, 2017, primarily related to fees for theterminations of financing arrangements and professional services. The Company incurred pre-tax Separation-related transaction costs of $212 million for theyear ended December 31, 2016 primarily related to professional services. For the year ended December 31, 2017, the Company reported $333 million withindiscontinued operations for fees for the terminations of financing arrangements and costs required to complete the Separation. All other Separation-relatedtransaction costs are recorded in other expenses and reported within continuing operations.

In 2016, the Company recorded a non-cash charge of $ 260 million ( $223 million , net of income tax) for the impairment of Brighthouse goodwill includedin discontinued operations. As of the Separation date, the Company evaluated the assets of Brighthouse for potential impairment, and determined that noadditional impairment charge was required.

In connection with the Separation, MetLife, Inc. terminated various support agreements with Brighthouse.

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Notes to the Consolidated Financial Statements — (continued)

3. Dispositions (continued)

Agreements

In connection with the Separation, MetLife and Brighthouse entered into various agreements. The significant agreements were as follows:

Master Separation Agreement

MetLife entered into a master separation agreement with Brighthouse prior to the completion of the distribution. The master separation agreement setsforth agreements with Brighthouse relating to the ownership of certain assets and the allocation of certain liabilities in connection with the Separation. It alsosets forth other agreements governing the relationship with Brighthouse after the distribution, including certain payment obligations between the parties.

Tax Agreements

Immediately prior to the Separation, MetLife entered into a tax separation agreement with Brighthouse. Among other things, the tax separation agreementgoverns the allocation between MetLife and Brighthouse of the responsibility for the taxes of the MetLife group. The tax separation agreement also allocatesrights, obligations and responsibilities in connection with certain administrative matters relating to the preparation of tax returns and control of tax audits andother proceedings relating to taxes. For the taxable periods prior to Separation, MetLife and Brighthouse have joint and several liability for the MetLifeconsolidated U.S. federal income tax returns’ current taxes (and the benefits of tax attributes such as losses) allocated to Brighthouse. The tax separationagreement provides that the Brighthouse allocation of taxes could vary depending upon the outcome of Internal Revenue Service (“IRS”) examinations. UponSeparation, MetLife, Inc. recorded a current income tax receivable of $1.4 billion and a corresponding payable to Brighthouse reported in other liabilities. InOctober 2017, in accordance with the tax separation agreement, $729 million of this amount was paid by MetLife, Inc. to Brighthouse. Accordingly, atDecember 31, 2017 , the Company’s current income tax receivable and corresponding payable to Brighthouse, reported in other liabilities, was $726 million .In 2018, as a result of filing its U.S. tax return, the Company increased its current income tax receivable and corresponding payable to Brighthouse by$183 million . The adjusted payable of $909 million was settled in 2018 in accordance with the tax separation agreement. In addition, at December 31, 2018 ,the Company also reported a receivable from Brighthouse of $111 million in other assets, offset by a tax payable of $111 million , of which $68 million wasreported in current income tax payable and $43 million was reported in other liabilities. These amounts represent Brighthouse uncertain tax items and auditadjustments while it was a member of the Company’s U.S. consolidated tax return.

As part of the tax separation agreement, MetLife, Inc. is liable for the U.S. federal income tax cost of a discrete Separation‑related tax charge incurred byBrighthouse. The income tax charge arises from the recapture of certain tax benefits incurred prior to Separation, and is caused by the deconsolidation ofBrighthouse from the MetLife tax group at Separation. As a result, MetLife, Inc. recorded a decrease to current income tax recoverable and a charge toprovision for income tax expense (benefit) of $1,093 million , which was reported in discontinued operations for the Company.

Additionally, MetLife, Inc. has the right to receive future payments from Brighthouse for a tax asset that Brighthouse received as a result of restructuringprior to the Separation. Included in other assets is a receivable from Brighthouse of $330 million and $333 million , at December 31, 2018 and 2017 ,respectively, related to these future payments, after a reduction in 2017 of $222 million as a result of U.S. Tax Reform.

TransactionsPriortotheSeparation

Prior to the Separation, the Company completed the following transactions in 2017.

Contributions of Entities, Mergers and Dividend

In April 2017, following receipt of applicable regulatory approvals, MetLife contributed certain captive reinsurance companies to Brighthouse LifeInsurance Company (“Brighthouse Insurance”), which were merged into Brighthouse Reinsurance Company of Delaware (“BRCD”), a newly-formed captivereinsurance company that is wholly-owned by Brighthouse Insurance.

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Notes to the Consolidated Financial Statements — (continued)

3. Dispositions (continued)

In July 2017, MetLife, Inc. contributed the voting common interests of Brighthouse Holdings, LLC, a subsidiary of MetLife, Inc. at that time, toBrighthouse Financial, Inc. Brighthouse Holdings, LLC was at that time an intermediate holding company which owned all of the subsidiaries withinBrighthouse.

In August 2017, Brighthouse Financial, Inc. paid a cash dividend to MetLife, Inc. of $1.8 billion in connection with the Separation.

Termination of Financing Arrangements

In April 2017, MetLife, Inc. and MetLife Reinsurance Company of South Carolina (“MRSC”) terminated the MRSC collateral financing arrangementassociated with secondary guarantees. As a result, the $2.8 billion collateral financing arrangement liability outstanding was extinguished utilizing $2.8 billionof assets held in trust, with the remaining $590 million of assets held in trust returned to MetLife, Inc. as a cash return of capital from a subsidiary. Total feesassociated with the termination were $37 million and were reported in discontinued operations.

In April 2017, MetLife, Inc. and MetLife Reinsurance Company of Vermont (“MRV”) terminated the $4.3 billion committed facility, and MetLife, Inc.and MRSC terminated the $3.5 billion committed facility. Total fees associated with the terminations were $257 million and were reported in discontinuedoperations.

See Note 14 for information on the junior subordinated debentures in connection with the Separation.

New Financing Arrangements

In April 2017, BRCD entered into a new financing arrangement with a pool of highly rated third-party reinsurers with a total capacity of $10.0 billion .This financing arrangement consists of credit-linked notes that each have a term of 20 years.

In June 2017, Brighthouse Holdings, LLC issued 50,000 units of 6.50% fixed rate cumulative preferred units to MetLife, Inc. and in turn MetLife, Inc.sold the preferred units to third-party investors, for net proceeds of $49 million .

In June 2017, Brighthouse Financial, Inc. issued $1.5 billion of senior notes due in June 2027 (the “2027 Senior Notes”) which bear interest at a fixed rateof 3.70% , payable semi-annually. Also in June 2017, Brighthouse Financial, Inc. issued $1.5 billion of senior notes due in June 2047 (the “2047 SeniorNotes,” and together with the 2027 Senior Notes, the “Senior Notes”) which bear interest at a fixed rate of 4.70% , payable semi-annually. In connection withthe issuance of the Senior Notes, MetLife, Inc. had initially guaranteed the Senior Notes on a senior unsecured basis. The guarantee was released, inaccordance with its terms, upon Separation.

In June 2017, subsequent to the issuance of the Senior Notes, the borrowing capacity under Brighthouse Financial, Inc.’s three-year senior unsecureddelayed draw term loan agreement (the “2016 Term Loan Agreement”) was decreased from $3.0 billion to $536 million . On July 21, 2017, concurrently withentering into a new term loan agreement described below, Brighthouse Financial, Inc. terminated the 2016 Term Loan Agreement without penalty.

In July 2017, Brighthouse Financial, Inc. entered into a new $600 million senior unsecured delayed draw term loan agreement (the “2017 Term LoanAgreement”). Under the 2017 Term Loan Agreement, Brighthouse Financial, Inc. may borrow up to a maximum of $600 million which may be used forgeneral corporate purposes, including in connection with the Separation, of which $500 million was available prior to the Separation. The 2017 Term LoanAgreement contains certain covenants that could restrict the operations and use of funds of Brighthouse. On August 2, 2017, Brighthouse Financial, Inc.borrowed $500 million under the 2017 Term Loan Agreement in connection with the Separation.

OngoingTransactionswithBrighthouse

The Company considered all of its continuing involvement with Brighthouse in determining whether to deconsolidate and present Brighthouse results asdiscontinued operations, including the agreements described above and the ongoing transactions described below.

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Notes to the Consolidated Financial Statements — (continued)

3. Dispositions (continued)

The Company entered into reinsurance, committed facility, structured settlement, and contract administrative services transactions with Brighthouse in thenormal course of business and such transactions will continue based upon business needs. In addition, prior to and in connection with the Separation, theCompany entered into various other agreements, including investment management, transition services and employee matters agreements, with Brighthouse forservices necessary for both the Company and Brighthouse to conduct their activities. Intercompany transactions prior to the Separation between the Companyand Brighthouse are eliminated and excluded from the consolidated statements of operations and consolidated balance sheets. Transactions between theCompany and Brighthouse that continue after the Separation are included on the Company’s consolidated statements of operations and consolidated balancesheets.

In June 2018, the Company sold FVO Brighthouse Common Stock and as a result the Company no longer considers Brighthouse to be a related party.Therefore, the following discussion of the ongoing transactions with Brighthouse only includes disclosures of related party amounts through June 30, 2018 and atDecember 31, 2017 . However, since the Company considers the reinsurance transactions and the transition service agreement discussed below to have asignificant impact on its consolidated statements of operations, it has updated these disclosures through December 31, 2018 .

Reinsurance

The Company entered into reinsurance transactions with Brighthouse in the normal course of business and such transactions will continue based uponbusiness needs. Information regarding the significant effects of reinsurance transactions with Brighthouse was as follows:

Included on ConsolidatedStatements of Operations

Excluded from Consolidated Statementsof Operations

YearsEnded

December 31,

Years Ended

December 31,

2018 2017 (1) 2017 (2) 2016 (In millions)Premiums Reinsurance assumed $ 401 $ 183 $ 248 $ 462

Reinsurance ceded (13) (4) (7) (9)

Net premiums $ 388 $ 179 $ 241 $ 453

Universal life and investment-type product policy fees Reinsurance assumed $ 7 $ (4) $ (6) $ (2)

Reinsurance ceded (96) (44) (55) (102)

Net universal life and investment-type product policy fees $ (89) $ (48) $ (61) $ (104)

Policyholder benefits and claims Reinsurance assumed $ 328 $ 150 $ 196 $ 385

Reinsurance ceded (36) (22) (16) (23)

Net policyholder benefits and claims $ 292 $ 128 $ 180 $ 362

Interest credited to policyholder account balances Reinsurance assumed $ 14 $ 6 $ 10 $ 16

Reinsurance ceded (71) (30) (42) (75)

Net interest credited to policyholder account balances $ (57) $ (24) $ (32) $ (59)

Other expenses Reinsurance assumed $ 105 $ 39 $ 10 $ 88

Reinsurance ceded (29) 7 (28) (29)

Net other expenses $ 76 $ 46 $ (18) $ 59__________________

(1) Includes transactions after the Separation.

(2) Includes transactions prior to the Separation.

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Notes to the Consolidated Financial Statements — (continued)

3. Dispositions (continued)

Information regarding the related party effects of reinsurance transactions with Brighthouse included on the consolidated balance sheets was as follows at:

December 31, 2017

Assumed Ceded (In millions)Assets Premiums, reinsurance and other receivables $ 167 $ 1,793

Deferred policy acquisition costs and value of business acquired 384 (40)

Total assets $ 551 $ 1,753

Liabilities Future policy benefits $ 1,734 $ —

Other policy-related balances 119 28

Other liabilities 1,458 19

Total liabilities $ 3,311 $ 47

Transition Services

In connection with the Separation, the Company entered into a transition services agreement with Brighthouse for services necessary for Brighthouse toconduct its activities. The services are expected to continue up to 36 months after the date of Separation, with certain services potentially to be made availablefor several years thereafter. For the year ended December 31, 2018, the Company recognized $305 million in other revenues for services provided under suchtransition services agreement. After the Separation, for the year ended December 31, 2017, the Company recognized $140 million as a reduction to otherexpenses for transitional services provided under the agreement. Prior to the Separation, for the year ended December 31, 2017 , the Company chargedBrighthouse $191 million for services provided under the agreement, which were intercompany transactions and eliminated and excluded from theconsolidated statements of operations.

Investment Management

In connection with the Separation, the Company entered into investment management services agreements with Brighthouse. Each agreement had aninitial term of 18 months after the date of Separation, after which period either party to the agreements was permitted to terminate upon notice to the otherparty. On February 5, 2019, the Company entered into a new investment management services agreement with Brighthouse that remains in effect untilterminated by either party upon notice. After the Separation, for the years ended December 31, 2018 and 2017 , the Company recognized related party revenueof $61 million and $48 million in other revenues for services provided under the agreements. Prior to the Separation, for the year ended December 31, 2017 ,the Company charged Brighthouse $57 million for services provided under the agreements, which were intercompany transactions and eliminated andexcluded from the consolidated statements of operations.

Committed Facility

MRV and MetLife, Inc. have a $2.9 billion committed facility which is used as collateral for certain affiliated reinsurance liabilities. At December 31,2017 , Brighthouse was a related party beneficiary of $2.4 billion of letters of credit issued under this committed facility and in consideration Brighthousereimbursed MetLife, Inc. for a portion of the letter of credit fees. Prior to the Separation, the Company entered into the committed facility with Brighthouse inthe normal course of business and such transactions will continue based upon business needs.

See “— Transactions Prior to the Separation — Termination of Financing Arrangements” for additional transactions with Brighthouse.

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Notes to the Consolidated Financial Statements — (continued)

3. Dispositions (continued)

Other

The Company has existing assumed structured settlement claim obligations as an assignment company for Brighthouse. These liabilities are measured atthe present value of the periodic claims to be provided and reported as other policy-related balances. The Company receives a fee for assuming these claimobligations and, as the assignee of the claim, is legally obligated to ensure periodic payments are made to the claimant. The Company purchased annuitiesfrom Brighthouse to fund these obligations and designates payments to be made directly to the claimant by Brighthouse as the annuity writer. The aggregatecontract values of annuities funding structured settlement claims are recorded as an asset for which the Company has also recorded an unpaid claim obligationreported in other policy-related balances. Such aggregated related party contract values were $1.3 billion at December 31, 2017. The Company entered intothese transactions with Brighthouse in the normal course of business and such transactions will continue based upon business needs.

The Company provides services necessary for Brighthouse to conduct its business, which primarily include contract administrative services for certainBrighthouse investment-type products. After the Separation, for the years ended December 31, 2018 and 2017, the Company recognized related party revenueof $63 million and $54 million for administrative services provided to Brighthouse. Prior to the Separation, during the year ended December 31, 2017, theCompany provided administrative services to Brighthouse for $73 million which were intercompany transactions and eliminated and excluded from theconsolidated statements of operations. The Company entered into these transactions with Brighthouse in the normal course of business and such transactionswill continue based upon business needs.

In connection with the Separation, the Company entered into an employee matters agreement with Brighthouse to allocate obligations and responsibilitiesrelating to employee compensation and benefit plans and other related matters. The employee matters agreement provides that MetLife will reimburseBrighthouse for certain pension benefit payments, retiree health and life benefit payments and deferred compensation payments. Included in other liabilities atDecember 31, 2017, is a related party payable to Brighthouse of $186 million related to these future payments.

At December 31, 2017, the Company had a related party receivable from Brighthouse of $97 million related to services provided and a related partypayable to Brighthouse of $50 million related to services received.

DiscontinuedOperations

The following table presents the amounts related to the operations and loss on disposal of Brighthouse that have been reflected in discontinued operations:

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

3. Dispositions (continued)

For the Years Ended December

31,

2017 (1) 2016

(In millions)

Revenues Premiums $ 820 $ 1,951Universal life and investment-type product policy fees 2,201 3,724Net investment income 1,783 3,157Other revenues 150 74Total net investment gains (losses) (48) (140)Net derivative gains (losses) (1,061) (5,886)

Total revenues 3,845 2,880Expenses Policyholder benefits and claims 2,217 4,487Interest credited to policyholder account balances 620 1,107Policyholder dividends 16 34Goodwill impairment — 260Other expenses 853 1,333

Total expenses 3,706 7,221Income (loss) from discontinued operations before provision for income tax and loss on disposal of discontinued operations 139 (4,341)

Provision for income tax expense (benefit) (46) (1,607)Income (loss) from discontinued operations before loss on disposal of discontinued operations, net of income tax 185 (2,734)

Transaction costs associated with the Separation, net of income tax (216) —Tax charges associated with the Separation (955) —

Income (loss) on disposal of discontinued operations, net of income tax (1,171) —

Income (loss) from discontinued operations, net of income tax $ (986) $ (2,734)__________________

(1) Includes transactions prior to the Separation.

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

3. Dispositions (continued)

In the consolidated statements of cash flows, the cash flows from discontinued operations are not separately classified. The following table presents selectedfinancial information regarding cash flows of the discontinued operations.

For the Years Ended December 31,

2017 2016 (In millions)Net cash provided by (used in):

Operating activities $ 1,329 $ 3,697

Investing activities $ (2,732) $ 4,674

Financing activities $ (367) $ (4,715)

U.S.RetailAdvisorForceDivestiture

In July 2016, MetLife, Inc. completed the sale to Massachusetts Mutual Life Insurance Company (“MassMutual”) of its U.S. retail advisor force and certainassets associated with the MetLife Premier Client Group, including all of the issued and outstanding shares of MetLife’s affiliated broker-dealer, MetLifeSecurities, Inc., a wholly-owned subsidiary of MetLife, Inc. (collectively, the “U.S. Retail Advisor Force Divestiture”) for $291 million . MassMutual assumed allof the liabilities related to such assets that arise or occur after the closing of the sale. The Company recorded a gain of $103 million ( $58 million , net of incometax), in net investment gains (losses) for the year ended December 31, 2016 . See Notes 10 and 17 for discussion of certain charges related to the sale.

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance

InsuranceLiabilities

Insurance liabilities are comprised of future policy benefits, policyholder account balances and other policy-related balances. Information regarding insuranceliabilities by segment, as well as Corporate & Other, was as follows at:

December 31,

2018 2017

(In millions)

U.S. $ 141,641 $ 136,065Asia 108,456 99,404Latin America 16,131 16,758EMEA 17,069 19,579MetLife Holdings 102,371 103,372Corporate & Other 1,334 829

Total $ 387,002 $ 376,007

Future policy benefits are measured as follows:

Product Type: Measurement Assumptions:Participating life Aggregate of (i) net level premium reserves for death and endowment policy benefits (calculated based upon the non-

forfeiture interest rate, ranging from 3% to 7% for U.S. business and less than 1% to 14% for non-U.S. business andmortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability forterminal dividends for U.S. business.

Nonparticipating life Aggregate of the present value of future expected benefit payments and related expenses less the present value of futureexpected net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when thebasis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from2% to 11% for U.S. business and less than 1% to 13% for non-U.S. business.

I ndividual and grouptraditional fixed annuitiesafter annuitization

Present value of future expected payments. Interest rate assumptions used in establishing such liabilities range from 1% to11% for U.S. business and less than 1% to 11% for non-U.S. business.

Non-medical healthinsurance

The net level premium method and assumptions as to future morbidity, withdrawals and interest, which provide a marginfor adverse deviation. Interest rate assumptions used in establishing such liabilities range from 1% to 7% (primarilyrelated to U.S. business).

Disabled lives Present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rateassumptions used in establishing such liabilities range from 2% to 8% for U.S. business and less than 1% to 9% for non-U.S. business.

Property and casualtyinsurance

The amount estimated for claims that have been reported but not settled and claims incurred but not reported are basedupon the Company’s historical experience and other actuarial assumptions that consider the effects of currentdevelopments, anticipated trends and risk management programs, reduced for anticipated salvage and subrogation.

Participating business represented 3% of the Company’s life insurance in-force at both December 31, 2018 and 2017 . Participating policies represented 14% ,15% and 16% of gross traditional life insurance premiums for the years ended December 31, 2018 , 2017 and 2016 , respectively.

Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments and investmentperformance; (ii) credited interest, ranging from less than 1% to 13% for U.S. business and less than 1% to 15% for non-U.S. business, less expenses, mortalitycharges and withdrawals; and (iii) fair value adjustments relating to business combinations.

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

Guarantees

The Company issues directly and assumes through reinsurance variable annuity products with guaranteed minimum benefits. GMABs, the non-life contingentportion of GMWBs and certain non-life contingent portions of GMIBs are accounted for as embedded derivatives in policyholder account balances and are furtherdiscussed in Note 9 . Guarantees accounted for as insurance liabilities include:

Guarantee: Measurement Assumptions:GMDBs • A return of purchase payment upon death even if the account

value is reduced to zero.

• Present value of expected death benefits in excess of the projectedaccount balance recognizing the excess ratably over theaccumulation period based on the present value of total expectedassessments.

• An enhanced death benefit may be available for an additional

fee. • Assumptions are consistent with those used for amortizing DAC, and

are thus subject to the same variability and risk.

• Investment performance and volatility assumptions are consistent withthe historical experience of the appropriate underlying equity index,such as the S&P 500 Index.

• Benefit assumptions are based on the average benefits payable over a

range of scenarios.GMIBs • After a specified period of time determined at the time of

issuance of the variable annuity contract, a minimumaccumulation of purchase payments, even if the account valueis reduced to zero, that can be annuitized to receive a monthlyincome stream that is not less than a specified amount.

• Present value of expected income benefits in excess of the projectedaccount balance at any future date of annuitization and recognizingthe excess ratably over the accumulation period based on presentvalue of total expected assessments.

• Certain contracts also provide for a guaranteed lump sum return

of purchase premium in lieu of the annuitization benefit. • Assumptions are consistent with those used for estimating GMDB

liabilities.

• Calculation incorporates an assumption for the percentage of the

potential annuitizations that may be elected by the contractholder.GMWBs • A return of purchase payment via partial withdrawals, even if

the account value is reduced to zero, provided that cumulativewithdrawals in a contract year do not exceed a certain limit.

• Expected value of the life contingent payments and expectedassessments using assumptions consistent with those used forestimating the GMDB liabilities.

• Certain contracts include guaranteed withdrawals that are life

contingent.

The Company also issues other annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash and ahigher rate if the contractholder elects to annuitize. These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certainother annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract.Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee ora guaranteed paid-up benefit.

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity and universal and variablelife contracts was as follows:

Annuity Contracts Universal and Variable Life Contracts

GMDBs and GMWBs GMIBs Secondary Guarantees Paid-Up

Guarantees Total

(In millions)

Direct and Assumed: Balance at January 1, 2016 $ 364 $ 524 $ 2,726 $ 306 $ 3,920Incurred guaranteed benefits (1) 102 78 291 25 496Paid guaranteed benefits (15) (1) (28) — (44)Balance at December 31, 2016 451 601 2,989 331 4,372Incurred guaranteed benefits (1) 91 121 233 16 461Paid guaranteed benefits (14) (2) (34) — (50)Balance at December 31, 2017 528 720 3,188 347 4,783Incurred guaranteed benefits (1) (78) 178 291 12 403Paid guaranteed benefits (22) — (37) — (59)Balance at December 31, 2018 $ 428 $ 898 $ 3,442 $ 359 $ 5,127Ceded: Balance at January 1, 2016 $ 19 $ 6 $ 218 $ 214 $ 457Incurred guaranteed benefits — (1) (27) 17 (11)Paid guaranteed benefits 5 — — — 5Balance at December 31, 2016 24 5 191 231 451Incurred guaranteed benefits 4 1 50 11 66Paid guaranteed benefits 6 — — — 6Balance at December 31, 2017 34 6 241 242 523Incurred guaranteed benefits (38) 4 28 9 3Paid guaranteed benefits 4 — — — 4Balance at December 31, 2018 $ — $ 10 $ 269 $ 251 $ 530Net: Balance at January 1, 2016 $ 345 $ 518 $ 2,508 $ 92 $ 3,463Incurred guaranteed benefits 102 79 318 8 507Paid guaranteed benefits (20) (1) (28) — (49)Balance at December 31, 2016 427 596 2,798 100 3,921Incurred guaranteed benefits 87 120 183 5 395Paid guaranteed benefits (20) (2) (34) — (56)Balance at December 31, 2017 494 714 2,947 105 4,260Incurred guaranteed benefits (40) 174 263 3 400Paid guaranteed benefits (26) — (37) — (63)Balance at December 31, 2018 $ 428 $ 888 $ 3,173 $ 108 $ 4,597__________________

(1) Secondary guarantees include the effects of foreign currency translation of $62 million , $78 million and $119 million at December 31, 2018 , 2017 and 2016, respectively.

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

Information regarding the Company’s guarantee exposure, which includes direct and assumed business, but excludes offsets from hedging or cededreinsurance, if any, was as follows at:

December 31,

2018 2017

In the

Event of Death At

Annuitization In the

Event of Death At

Annuitization (Dollars in millions)Annuity Contracts: Variable Annuity Guarantees:

Total account value (1), (2), (3) $ 56,235 $ 21,628 $ 66,724 $ 26,223 Separate account value (1) $ 37,342 $ 19,839 $ 45,431 $ 24,336 Net amount at risk (2) $ 2,768 (4) $ 483 (5) $ 1,238 (4) $ 525 (5)

Average attained age of contractholders 66 years 65 years 65 years 65 years Other Annuity Guarantees:

Total account value (1), (3) N/A $ 1,272 N/A $ 1,424 Net amount at risk N/A $ 489 (6) N/A $ 569 (6)

Average attained age of contractholders N/A 50 years N/A 50 years

December 31,

2018 2017

Secondary Guarantees

Paid-Up Guarantees

Secondary Guarantees

Paid-Up Guarantees

(Dollars in millions)Universal and Variable Life Contracts:

Total account value (1), (3) $ 8,943 $ 3,070 $ 9,036 $ 3,207

Net amount at risk (7) $ 64,154 $ 15,539 $ 66,956 $ 16,615

Average attained age of policyholders 57 years 64 years 56 years 63 years__________________

(1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed abovemay not be mutually exclusive.

(2) Includes amounts, which are not reported on the consolidated balance sheets, from assumed variable annuity guarantees from the Company’s formeroperating joint venture in Japan.

(3) Includes the contractholder’s investments in the general account and separate account, if applicable.

(4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur ifdeath claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assistwith covering income taxes payable upon death.

(5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuityrates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to suchguarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization ofthe guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved.

(6) Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that wouldbe required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amountprovided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event allcontractholders were to annuitize on the balance sheet date.

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

(7) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur ifdeath claims were filed on all contracts on the balance sheet date.

Account balances of contracts with guarantees were invested in separate account asset classes as follows at:

December 31,

2018 2017 (In millions)Fund Groupings: Equity $ 19,579 $ 23,213Balanced 17,073 20,859Bond 5,299 5,983Money Market 277 252

Total $ 42,228 $ 50,307

ObligationsUnderFundingAgreements

The Company issues fixed and floating rate funding agreements, which are denominated in either U.S. dollars or foreign currencies, to certain unconsolidatedspecial purpose entities (“SPEs”) that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such fundingagreements. During the years ended December 31, 2018 , 2017 and 2016 , the Company issued $41.8 billion , $42.7 billion and $39.7 billion , respectively, andrepaid $43.7 billion , $41.4 billion and $38.5 billion , respectively, of such funding agreements. At December 31, 2018 and 2017 , liabilities for funding agreementsoutstanding, which are included in policyholder account balances, were $32.3 billion and $34.2 billion , respectively.

Certain of the Company’s subsidiaries are members of FHLBanks. Holdings of common stock of FHLBanks, included in other invested assets, were as followsat:

December 31,

2018 2017 (In millions)FHLB of New York $ 724 $ 733FHLB of Des Moines $ 17 $ 35FHLB of Pittsburgh $ 19 $ 11

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

Such subsidiaries have also entered into funding agreements with FHLBanks and a subsidiary of the Federal Agricultural Mortgage Corporation, a federallychartered instrumentality of the U.S. (“Farmer Mac”). The liability for such funding agreements is included in policyholder account balances. Information relatedto such funding agreements was as follows at:

Liability Collateral December 31,

2018 2017 2018 2017 (In millions)FHLB of New York (1) $ 14,245 $ 14,445 $ 16,557 (2) $ 16,605 (2)Farmer Mac (3) $ 2,550 $ 2,550 $ 2,639 $ 2,644 FHLB of Des Moines (1) $ 425 $ 625 $ 709 (2) $ 701 (2)FHLB of Pittsburgh (1) $ 450 $ 250 $ 590 (2) $ 311 (2)__________________

(1) Represents funding agreements issued to the applicable FHLBank in exchange for cash and for which such FHLBank has been granted a lien on certainassets, some of which are in the custody of such FHLBank, including residential mortgage-backed securities (“RMBS”), to collateralize obligations underadvances evidenced by funding agreements. The applicable subsidiary of the Company is permitted to withdraw any portion of the collateral in the custodyof such FHLBank as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Uponany event of default by such subsidiary, the applicable FHLBank’s recovery on the collateral is limited to the amount of such subsidiary’s liability to suchFHLBank.

(2) Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value.

(3) Represents funding agreements issued to a subsidiary of Farmer Mac, as well as certain SPEs that have issued debt securities for which payment of interestand principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by Farmer Mac.The obligations under these funding agreements are secured by a pledge of certain eligible agricultural mortgage loans and may, under certaincircumstances, be secured by other qualified collateral. The amount of collateral presented is at carrying value.

LiabilitiesforUnpaidClaimsandClaimExpenses

The following is information about incurred and paid claims development by segment as of December 31, 2018 . Such amounts are presented net ofreinsurance, and are not discounted. The tables present claims development and cumulative claim payments by incurral year. The development tables are onlypresented for significant short-duration product liabilities within each segment. Where practical, up to 10 years of history has been provided. In order to eliminatepotential fluctuations related to foreign exchange rates, liabilities and payments denominated in a foreign currency have been translated using the 2018 year endspot rates for all periods presented. The information about incurred and paid claims development prior to 2016 is presented as supplementary information.

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

U.S.

Group Life - Term

Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2018

For the Years Ended December 31, Total IBNR

Liabilities PlusExpected

Development onReported Claims

CumulativeNumber ofReportedClaims

(Unaudited) Incurral

Year 2011 2012 2013 2014 2015 2016 2017 2018 (Dollars in millions)

2011 $ 6,318 $ 6,290 $ 6,293 $ 6,269 $ 6,287 $ 6,295 $ 6,294 $ 6,295 $ 1 207,608

2012 6,503 6,579 6,569 6,546 6,568 6,569 6,569 1 209,047

2013 6,637 6,713 6,719 6,720 6,730 6,720 3 211,341

2014 6,986 6,919 6,913 6,910 6,914 5 213,388

2015 7,040 7,015 7,014 7,021 11 213,243

2016 7,125 7,085 7,095 14 210,706

2017 7,432 7,418 31 246,364

2018 7,757 899 203,329

Total 55,789

Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (53,786)

All outstanding liabilities for incurral years prior to 2011, net of reinsurance 9

Total unpaid claims and claim adjustment expenses, net of reinsurance $ 2,012

Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,

(Unaudited) Incurral

Year 2011 2012 2013 2014 2015 2016 2017 2018

(In millions)

2011 $ 4,982 $ 6,194 $ 6,239 $ 6,256 $ 6,281 $ 6,290 $ 6,292 $ 6,295

2012 5,132 6,472 6,518 6,532 6,558 6,565 6,566

2013 5,216 6,614 6,664 6,678 6,711 6,715

2014 5,428 6,809 6,858 6,869 6,902

2015 5,524 6,913 6,958 6,974

2016 5,582 6,980 7,034

2017 5,761 7,292

2018 6,008

Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 53,786

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018 :

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

Years 1 2 3 4 5 6 7 8

Group Life - Term 78.2% 20.2% 0.7% 0.2% 0.4% 0.1% —% —%

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

Group Long-Term Disability

Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2018

For the Years Ended December 31, Total IBNR

Liabilities PlusExpected

Development onReported Claims

CumulativeNumber ofReportedClaims

(Unaudited) Incurral

Year 2011 2012 2013 2014 2015 2016 2017 2018 (Dollars in millions)

2011 $ 955 $ 916 $ 894 $ 914 $ 924 $ 923 $ 918 $ 917 $ — 21,643

2012 966 979 980 1,014 1,034 1,037 1,021 — 20,085

2013 1,008 1,027 1,032 1,049 1,070 1,069 — 21,135

2014 1,076 1,077 1,079 1,101 1,109 — 22,846

2015 1,082 1,105 1,093 1,100 — 21,177

2016 1,131 1,139 1,159 6 17,897

2017 1,244 1,202 29 15,968

2018 1,240 621 8,208

Total 8,817

Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (3,815)

All outstanding liabilities for incurral years prior to 2011, net of reinsurance 2,110

Total unpaid claims and claim adjustment expenses, net of reinsurance $ 7,112

Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,

(Unaudited) Incurral

Year 2011 2012 2013 2014 2015 2016 2017 2018

(In millions)

2011 $ 44 $ 217 $ 337 $ 411 $ 478 $ 537 $ 588 $ 635

2012 43 229 365 453 524 591 648

2013 43 234 382 475 551 622

2014 51 266 428 526 609

2015 50 264 427 524

2016 49 267 433

2017 56 290

2018 54

Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 3,815

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018 :

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

Years 1 2 3 4 5 6 7 8

Group Long-Term Disability 4.4% 18.9% 14.0% 8.6% 7.2% 6.5% 5.6% 5.1%

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

Significant Methodologies and Assumptions

Group Life - Term and Group Long-Term Disability incurred but not paid (“IBNP”) liabilities are developed using a combination of loss ratio anddevelopment methods. Claims in the course of settlement are then subtracted from the IBNP liabilities, resulting in the IBNR liabilities. The loss ratiomethod is used in the period in which the claims are neither sufficient nor credible. In developing the loss ratios, any material rate increases that couldchange the underlying premium without affecting the estimated incurred losses are taken into account. For periods where sufficient and credible claim dataexists, the development method is used based on the claim triangles which categorize claims according to both the period in which they were incurred andthe period in which they were paid, adjudicated or reported. The end result is a triangle of known data that is used to develop known completion ratios andfactors. Claims paid are then subtracted from the estimated ultimate incurred claims to calculate the IBNP liability.

An expense liability is held for the future expenses associated with the payment of incurred but not yet paid claims (IBNR and pending). This isexpressed as a percentage of the underlying claims liability and is based on past experience and the anticipated future expense structure.

For Group Life - Term and Group Long-Term Disability, first year incurred claims and allocated loss adjustment expenses increased in 2018 comparedto the 2017 incurral year due to the growth in the size of the business.

There were no significant changes in methodologies during 2018 . The assumptions used in calculating the unpaid claims and claim adjustmentexpenses for Group Life - Term and Group Long-Term Disability are updated annually to reflect emerging trends in claim experience.

No additional premiums or return premiums have been accrued as a result of the prior year development.

Liabilities for Group Life - Term unpaid claims and claim adjustment expenses are not discounted.

The liabilities for Group Long-Term Disability unpaid claims and claim adjustment expenses were $6.0 billion at both December 31, 2018 and 2017 .Using interest rates ranging from 3% to 8% , based on the incurral year, the total discount applied to these liabilities was $1.3 billion at both December 31,2018 and 2017 . The amount of interest accretion recognized was $509 million , $510 million and $565 million for the years ended December 31, 2018 ,2017 and 2016 , respectively. These amounts were reflected in policyholder benefits and claims.

For Group Life - Term, claims were based upon individual death claims. For Group Long-Term Disability, claim frequency was determined by thenumber of reported claims as identified by a unique claim number assigned to individual claimants. Claim counts initially include claims that do notultimately result in a liability. These claims are omitted from the claim counts once it is determined that there is no liability.

The Group Long-Term Disability IBNR included in the development tables above was developed using discounted cash flows, and is presented on adiscounted basis.

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

Property & Casualty - Auto Liability

Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2018

For the Years Ended December 31, Total IBNRLiabilities Plus

ExpectedDevelopment onReported Claims

CumulativeNumber ofReportedClaims

(Unaudited)

Incurral Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Dollars in millions)

2009 $ 862 $ 877 $ 853 $ 826 $ 823 $ 817 $ 815 $ 815 $ 814 $ 814 $ — 204,751

2010 863 873 853 847 833 826 825 822 823 — 204,481

2011 863 876 869 855 846 843 843 842 1 204,974

2012 882 881 869 851 846 847 846 1 199,362

2013 911 900 882 878 876 876 3 204,367

2014 897 910 913 910 911 6 207,572

2015 975 984 979 980 14 212,693

2016 1,012 1,002 997 36 210,627

2017 957 960 64 190,601

2018 938 166 167,521

Total 8,987

Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (7,854)

All outstanding liabilities for incurral years prior to 2009, net of reinsurance 27

Total unpaid claims and claim adjustment expenses, net of reinsurance $ 1,160

Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,

(Unaudited)

Incurral Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

(In millions)

2009 $ 321 $ 563 $ 681 $ 755 $ 789 $ 803 $ 810 $ 813 $ 813 $ 814

2010 319 572 695 762 796 810 816 818 820

2011 324 590 711 777 810 825 831 835

2012 333 600 715 783 815 831 840

2013 346 618 743 809 843 859

2014 352 648 777 844 884

2015 384 691 822 903

2016 396 702 842

2017 379 686

2018 371

Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 7,854

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018 :

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

Years 1 2 3 4 5 6 7 8 9 10

Auto Liability 39.2% 31.2% 14.2% 8.0% 4.0% 1.8% 0.9% 0.4% 0.1% —%

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

Property & Casualty - Home

Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2018

For the Years Ended December 31, Total IBNRLiabilities Plus

ExpectedDevelopment onReported Claims

CumulativeNumber ofReported

Claims

(Unaudited)

Incurral Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Dollars in millions)

2009 $ 506 $ 523 $ 510 $ 507 $ 503 $ 501 $ 498 $ 497 $ 497 $ 497 $ — 106,620

2010 573 589 587 584 582 581 580 579 579 — 115,517

2011 891 868 843 840 835 835 834 833 — 166,461

2012 714 713 703 698 696 694 693 2 146,545

2013 654 652 635 635 634 632 1 107,548

2014 707 702 704 705 701 3 113,649

2015 759 753 752 746 4 107,211

2016 740 743 743 14 107,128

2017 747 763 19 115,043

2018 671 67 91,726

Total 6,858

Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (6,634)

All outstanding liabilities for incurral years prior to 2009, net of reinsurance 1

Total unpaid claims and claim adjustment expenses, net of reinsurance $ 225

Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,

(Unaudited)

Incurral Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

(In millions)

2009 $ 385 $ 476 $ 486 $ 492 $ 495 $ 495 $ 496 $ 496 $ 496 $ 496

2010 436 546 562 571 574 577 578 578 579

2011 690 804 819 825 827 830 832 833

2012 559 668 681 687 689 690 690

2013 505 604 618 626 628 629

2014 574 670 685 692 695

2015 603 717 731 736

2016 593 704 720

2017 610 727

2018 529

Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 6,634

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018 :

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

Years 1 2 3 4 5 6 7 8 9 10

Home 79.8% 15.7% 2.1% 1.0% 0.4% 0.2% 0.2% —% —% 0.1%

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

Significant Methodologies and Assumptions

The liability for unpaid claim and claim adjustment expenses for the Property & Casualty business is determined by examining the historical claims andallocated claim adjustment expenses data. This data, which is gross of salvage and subrogation, is classified by incurral year and coverage and includes paidclaims data and reported liabilities. For homeowners and auto liability injury claims, the reported liabilities are set by the Company’s claims adjusters basedon the individual case, and a supplemental liability is added based on the historical development of reported claims. These supplemental liabilities areestimated by coverage based on adjusted report year data triangles to determine the estimated ultimate claim liability. Adjustments are made for settlementrates and average case liabilities. For auto non-injury claims, the Company holds an average statistical liability for every reported claim. This statisticalliability is based on an estimated average payment that varies by coverage, report year and state. These average estimated payments are updated monthly.

For all property and casualty coverages, many actuarial methods such as adjusted loss development (adjusted for settlement rates and average caseliabilities) and loss ratio methods are employed to develop a best estimate of the IBNR for each coverage type. Similar actuarial methods are used todetermine the best estimate of the expected salvage and subrogation; methods that look at recoveries by age and ratios of recoveries to paid loss arecompared for each coverage. A liability for unpaid allocated claim adjustment expenses is held for the future claim adjustment costs associated with thepayment of incurred but not yet paid claims. This liability is calculated as a percentage of the underlying unpaid claims liability. The percentage is based onhistorical ratios of essential claim department expenses compared with paid losses.

There were no significant changes in methodologies or assumptions during 2018 . The assumptions used in calculating the unpaid claims and claimadjustment expenses for Property & Casualty - Auto Liability and Property & Casualty - Home are updated annually to reflect emerging trends in claimexperience.

No additional premiums or return premiums have been accrued as a result of the prior year development.

Liabilities for unpaid claims and claim adjustment expenses were not discounted.

The cumulative number of reported claims for auto liability coverages are counted by individual coverages (i.e. bodily injury and property damage) and,if multiple occupants are injured, then each injury is counted as a separate claim. For home coverages, each exposure is counted separately, so a house firewould, for example, have separate claim counts for the building, the contents, and additional living expenses. Claim counts include claims that do notultimately result in a liability. Any liability established upon receipt of these claims would subsequently be reversed.

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

Asia

Group Disability & Group Life

Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2018

For the Years Ended December 31, Total IBNR

Liabilities PlusExpected

Development onReported Claims

CumulativeNumber ofReportedClaims

(Unaudited) Incurral

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Dollars in millions)

2010 $ 74 $ 70 $ 75 $ 96 $ 96 $ 93 $ 122 $ 130 $ 121 $ 9 2,781

2011 58 61 80 80 84 112 119 116 16 2,985

2012 88 94 92 106 107 110 120 18 4,434

2013 134 135 157 152 151 159 12 5,064

2014 267 251 230 231 242 38 5,890

2015 252 240 244 238 50 5,606

2016 211 214 202 63 3,499

2017 273 254 90 3,382

2018 333 178 2,122

Total 1,785

Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (1,223)

All outstanding liabilities for incurral years prior to 2010, net of reinsurance 16

Total unpaid claims and claim adjustment expenses, net of reinsurance $ 578

Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,

(Unaudited)

Incurral Year 2010 2011 2012 2013 2014 2015 2016 2017 2018

(In millions)

2010 $ 18 $ 36 $ 48 $ 58 $ 71 $ 80 $ 102 $ 108 $ 113

2011 12 36 49 60 73 92 98 100

2012 27 58 77 89 96 101 102

2013 39 89 109 123 134 147

2014 62 130 162 182 204

2015 73 139 173 187

2016 59 122 139

2017 80 144

2018 87

Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 1,223

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018 :

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

Years 1 2 3 4 5 6 7 8 9

Group Disability & Group Life 23.9% 25.2% 12.2% 8.9% 8.9% 8.8% 8.3% 3.9% 3.8%

Significant Methodologies and Assumptions

This business line consists of employer sponsored and industry sponsored Group Life and Group Disability risks.

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

For Group Life, the IBNR liability is determined by using the Bornhuetter-Ferguson Method, with factors derived by examining the experience ofhistorical claims. A pending liability is also calculated for claims that have been reported but have not been paid. A claim eligibility ratio based on pastexperience is applied to the face amount of individual claims.

For Group Disability, the IBNR liability is calculated by applying a percentage to premiums in-force based on the expected delay as evidenced by theexperience in the portfolio. This is then allocated back into different incurral years based on an assumed run-off. A claims in course of payment liability isalso calculated for claims that have been admitted and are in the course of payment. The assumptions employed are based on economic conditions andindustry experience, as adjusted for the Company’s own experience.

An expense liability is held for the future expenses associated with the payment of incurred but not yet paid claims. This is expressed as a percentage ofthe underlying claims liability and is based on past experience and the future expense structure.

There were no significant changes in methodologies during 2018 . T he assumptions used in calculating the unpaid claims and claim adjustmentexpenses for Group Disability and Group Life are updated annually to reflect emerging trends in claim experience.

No additional premiums or return premiums have been accrued as a result of the prior year development.

The liabilities for unpaid claims and claim adjustment expenses were $733 million and $756 million at December 31, 2018 and 2017 , respectively.These amounts were discounted using interest rates ranging from 3% to 7% , based on the incurral year. The total discount applied to these liabilities was$61 million and $57 million at December 31, 2018 and 2017 , respectively. The amount of interest accretion recognized was $19 million , $26 million and$22 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. These amounts were reflected in policyholder benefits and claims.

The Company tracks claim frequency by the number of reported claims as identified by a unique claim number assigned to individual claimants. Claimcounts include claims that do not ultimately result in a liability. A liability is only established for those claims that are expected to result in a liability, basedon historical factors.

LatinAmerica

Protection Life

Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2018

For the Years Ended December 31, Total IBNRLiabilities Plus

ExpectedDevelopment onReported Claims

CumulativeNumber ofReportedClaims

(Unaudited)

Incurral Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Dollars in millions)

2009 $ 229 $ 309 $ 314 $ 315 $ 315 $ 315 $ 315 $ 315 $ 317 $ 320 $ — 30,643

2010 251 323 330 331 331 331 331 332 334 — 32,102

2011 141 218 224 225 226 226 222 226 — 26,146

2012 150 204 209 210 211 209 211 — 26,105

2013 166 232 239 240 239 242 — 29,581

2014 242 366 377 346 350 — 38,071

2015 316 451 422 428 1 43,426

2016 340 437 448 3 37,555

2017 351 345 16 30,116

2018 328 119 21,926

Total 3,232

Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (2,933)

All outstanding liabilities for incurral years prior to 2009, net of reinsurance 9

Total unpaid claims and claim adjustment expenses, net of reinsurance $ 308

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,

(Unaudited)

Incurral Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

(In millions)

2009 $ 227 $ 302 $ 306 $ 307 $ 307 $ 307 $ 307 $ 307 $ 311 $ 312

2010 231 301 308 309 309 309 309 311 312

2011 139 213 220 220 221 221 222 222

2012 149 201 206 207 208 207 208

2013 162 225 230 230 230 232

2014 216 322 327 331 335

2015 259 363 386 394

2016 235 420 440

2017 206 312

2018 166

Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 2,933

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018 :

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

Years 1 2 3 4 5 6 7 8 9 10

Protection Life 62.4% 28.4% 2.7% 0.7% 0.2% 0.1% 0.2% 0.3% 0.7% 0.3%

Protection Health

Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance At December 31, 2018

For the Years Ended December 31, Total IBNRLiabilities Plus

ExpectedDevelopment onReported Claims

CumulativeNumber ofReportedClaims

(Unaudited)

Incurral Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Dollars in millions)

2009 $ 152 $ 170 $ 172 $ 172 $ 173 $ 173 $ 173 $ 173 $ 175 $ 175 $ — 92,576

2010 179 200 201 202 202 202 203 206 206 — 96,334

2011 215 239 240 241 242 242 239 239 — 106,023

2012 208 233 235 236 236 234 235 — 99,576

2013 225 254 255 256 253 253 — 103,132

2014 233 260 262 260 259 — 96,296

2015 201 228 229 228 1 84,767

2016 263 303 300 2 102,167

2017 381 355 4 113,183

2018 407 30 101,992

Total 2,657

Cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance (2,588)

All outstanding liabilities for incurral years prior to 2009, net of reinsurance 4

Total unpaid claims and claim adjustment expenses, net of reinsurance $ 73

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

Cumulative Paid Claims and Paid Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,

(Unaudited)

Incurral Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

(In millions)

2009 $ 152 $ 170 $ 172 $ 172 $ 173 $ 173 $ 173 $ 173 $ 175 $ 175

2010 179 200 201 202 202 202 203 205 206

2011 215 239 240 241 242 242 239 239

2012 208 233 235 236 236 235 235

2013 225 254 255 256 253 253

2014 231 258 260 256 256

2015 200 228 227 227

2016 247 296 298

2017 310 350

2018 349

Total cumulative paid claims and paid allocated claim adjustment expenses, net of reinsurance $ 2,588

Average Annual Percentage Payout

The following is supplementary information about average historical claims duration as of December 31, 2018 :

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

Years 1 2 3 4 5 6 7 8 9 10

Protection Health 87.3% 11.3% 0.6% —% —% —% (0.3)% 0.5% 0.7% 0.1%

Significant Methodologies and Assumptions

The Latin America segment establishes liabilities for unpaid losses, which are equal to the accumulation of unpaid reported claims, plus an estimate forclaims IBNR.

In general terms, for both the Protection Life and Protection Health products, the methodology for IBNR is a weighted loss ratio combined with theBornhuetter-Ferguson Method. The factors are derived by examining the experience of historical claims. In the initial months, the credibility is higher onpremiums and lower on claims. As the premiums are earned, the credibility grows for the factors. For one major medical Protection Health product, adifferent methodology is employed, which estimates the IBNR based on a percentage of policy cancellations and the accrued premium.

For Protection Health products, claim duration can be very long due to the multiple incidences over time that may occur for a single claim. The numberof claims reported per year is based on the original claim occurrence date for each individual claim. Any subsequent claims that are considered part of theoriginal claim occurrence are not counted as a new claim. For Protection Life products, claims are based upon individual death claims.

There were no significant changes in methodologies or assumptions during 2018 . The assumptions used in calculating the unpaid claims and claimadjustment expenses for Protection Life and Protection Health are updated annually to reflect emerging trends in claim experience.

No additional premiums or return premiums have been accrued as a result of the prior year development.

Liabilities for unpaid claims and claim adjustment expenses were not discounted.

For Protection Life and Protection Health products, claim counts initially include claims that do not ultimately result in a liability. These claims areomitted from the claim counts once it is determined that there is no liability.

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

ReconciliationoftheDisclosureofIncurredandPaidClaimsDevelopmenttotheLiabilityforUnpaidClaimsandClaimAdjustmentExpenses

The reconciliation of the net incurred and paid claims development tables to the liability for unpaid claims and claims adjustment expenses on theconsolidated balance sheet was as follows at:

December 31, 2018 (In millions)Short-Duration: Unpaid claims and allocated claims adjustment expenses, net of reinsurance: U.S.: Group Life - Term $ 2,012 Group Long-Term Disability 7,112 Property & Casualty - Auto 1,160 Property & Casualty - Home 225

Total $ 10,509

Asia - Group Disability & Group Life 578

Latin America: Protection Life 308 Protection Health 73

Total 381

Other insurance lines - all segments combined 1,107

Total unpaid claims and allocated claims adjustment expenses, net of reinsurance 12,575

Reinsurance recoverables on unpaid claims: U.S.: Group Life - Term 20 Group Long-Term Disability 109 Property & Casualty - Auto 66 Property & Casualty - Home 4

Total 199

Asia - Group Disability & Group Life 216

Latin America: Protection Life 4 Protection Health 6

Total 10

Other insurance lines - all segments combined 353

Total reinsurance recoverable on unpaid claims 778

Total unpaid claims and allocated claims adjustment expense 13,353

Unallocated claims adjustment expenses 90

Discounting (1,314)

Liability for unpaid claims and claim adjustment liabilities - short-duration 12,129

Liability for unpaid claims and claim adjustment liabilities - all long-duration lines 5,659Total liability for unpaid claims and claim adjustment expense (included in future policy benefits and other policy-

related balances) $ 17,788

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Notes to the Consolidated Financial Statements — (continued)

4. Insurance (continued)

RollforwardofClaimsandClaimAdjustmentExpenses

Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows:

Years Ended December 31,

2018 2017 2016

(In millions)

Balance at December 31 of prior period $ 17,094 $ 16,157 $ 9,669Less: Reinsurance recoverables 2,198 1,968 476

Net balance at December 31 of prior period 14,896 14,189 9,193Cumulative adjustment (1) — — 4,819Net balance at January 1, 14,896 14,189 14,012Incurred related to:

Current year 24,571 24,370 24,011Prior years (2) 454 133 382

Total incurred 25,025 24,503 24,393Paid related to:

Current year (18,757) (18,525) (18,696)Prior years (5,708) (5,271) (5,520)

Total paid (24,465) (23,796) (24,216)Net balance at December 31, 15,456 14,896 14,189

Add: Reinsurance recoverables 2,332 2,198 1,968Balance at December 31, $ 17,788 $ 17,094 $ 16,157__________________

(1) Reflects the accumulated adjustment, net of reinsurance, upon implementation of the short-duration contracts guidance which clarified the requirement toinclude claim information for long-duration contracts. The accumulated adjustment primarily reflects unpaid claim liabilities, net of reinsurance, for long-duration contracts as of the beginning of the period presented.

(2) During 2018 and 2017 , claims and claim adjustment expenses associated with prior years increased due to events incurred in prior years but reported duringcurrent year . During 2016 , claims and claim adjustment expenses associated with prior years increased due to the implementation of guidance related toshort- duration contracts.

SeparateAccounts

Separate account assets and liabilities include two categories of account types: pass-through separate accounts totaling $129.2 billion and $148.2 billion atDecember 31, 2018 and 2017 , respectively, for which the policyholder assumes all investment risk, and separate accounts for which the Company contractuallyguarantees either a minimum return or account value to the policyholder which totaled $46.4 billion and $56.8 billion at December 31, 2018 and 2017 ,respectively. The latter category consisted primarily of guaranteed interest contracts (“GICs”). The average interest rate credited on these contracts was 2.60% and2.34% at December 31, 2018 and 2017 , respectively.

For the years ended December 31, 2018 , 2017 and 2016 , there were no investment gains (losses) on transfers of assets from the general account to theseparate accounts.

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Notes to the Consolidated Financial Statements — (continued)

5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles

See Note 1 for a description of capitalized acquisition costs.

NonparticipatingandNon-Dividend-PayingTraditionalContracts

The Company amortizes DAC and VOBA related to these contracts (term insurance, nonparticipating whole life insurance, traditional group life insurance,non-medical health insurance, and accident & health insurance) over the appropriate premium paying period in proportion to the actual and expected future grosspremiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, morbidity,persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistentwith the assumptions used to calculate future policyholder benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DACor VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance oracquisition is caused only by variability in premium volumes.

Participating,Dividend-PayingTraditionalContracts

The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future grossmargins. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The future gross margins are dependent principallyon investment returns, policyholder dividend scales, mortality, persistency, expenses to administer the business, creditworthiness of reinsurance counterparties andcertain economic variables, such as inflation. For participating contracts within the closed block (dividend-paying traditional contracts) future gross margins arealso dependent upon changes in the policyholder dividend obligation. See Note 7 . Of these factors, the Company anticipates that investment returns, expenses,persistency and other factor changes, as well as policyholder dividend scales, are reasonably likely to impact significantly the rate of DAC and VOBAamortization. Each reporting period, the Company updates the estimated gross margins with the actual gross margins for that period. When the actual gross marginschange from previously estimated gross margins, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit tocurrent operations. When actual gross margins exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current periodcharge to earnings. The opposite result occurs when the actual gross margins are below the previously estimated gross margins. Each reporting period, theCompany also updates the actual amount of business in-force, which impacts expected future gross margins. When expected future gross margins are below thosepreviously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when theexpected future gross margins are above the previously estimated expected future gross margins. Each period, the Company also reviews the estimated grossmargins for each block of business to determine the recoverability of DAC and VOBA balances.

FixedandVariableUniversalLifeContractsandFixedandVariableDeferredAnnuityContracts

The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future grossprofits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependentprincipally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business,creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Companyanticipates that investment returns, expenses and persistency are reasonably likely to significantly impact the rate of DAC and VOBA amortization. Each reportingperiod, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previouslyestimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. Whenactual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. Theopposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actualamount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, theDAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits areabove the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business todetermine the recoverability of DAC and VOBA balances.

CreditInsurance,PropertyandCasualtyInsuranceandOtherShort-DurationContracts

The Company amortizes DAC for these contracts, which is primarily composed of commissions and certain underwriting expenses, in proportion to actual andfuture earned premium over the applicable contract term.

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Notes to the Consolidated Financial Statements — (continued)

5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (continued)

FactorsImpactingAmortization

Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contractseach reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-termexpectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations onminimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than theCompany’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. TheCompany monitors these events and only changes the assumption when its long-term expectation changes.

The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross margins and profits. These assumptionsprimarily relate to investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency, policyholder behavior and expenses toadminister business. Management annually updates assumptions used in the calculation of estimated gross margins and profits which may have significantlychanged. If the update of assumptions causes expected future gross margins and profits to increase, DAC and VOBA amortization will decrease, resulting in acurrent period increase to earnings. The opposite result occurs when the assumption update causes expected future gross margins and profits to decrease.

Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or byamendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement,substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with thereplacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract willcontinue and any acquisition costs associated with the related modification are expensed.

Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of grossmargins or profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC andVOBA that would have been amortized if such gains and losses had been recognized.

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Notes to the Consolidated Financial Statements — (continued)

5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (continued)

Information regarding DAC and VOBA was as follows:

Years Ended December 31,

2018 2017 2016 (In millions)DAC: Balance at January 1, $ 14,789 $ 13,830 $ 13,464Capitalizations 3,254 3,002 3,152Amortization related to: Net investment gains (losses) and net derivative gains (losses) (109) 60 229Other expenses (2,599) (2,426) (2,555)

Total amortization (2,708) (2,366) (2,326)Unrealized investment gains (losses) 511 (525) (171)Effect of foreign currency translation and other (276) 848 (289)Balance at December 31, 15,570 14,789 13,830VOBA: Balance at January 1, 3,630 3,760 3,966Amortization related to: Net investment gains (losses) and net derivative gains (losses) — — (3)Other expenses (267) (315) (389)

Total amortization (267) (315) (392)Unrealized investment gains (losses) 10 (4) 8Effect of foreign currency translation and other (48) 189 178Balance at December 31, 3,325 3,630 3,760Total DAC and VOBA: Balance at December 31, $ 18,895 $ 18,419 $ 17,590

Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at:

December 31,

2018 2017 (In millions)U.S. $ 633 $ 614Asia 10,156 9,261Latin America 1,984 2,050EMEA 1,622 1,673MetLife Holdings 4,474 4,797Corporate & Other 26 24

Total $ 18,895 $ 18,419

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Notes to the Consolidated Financial Statements — (continued)

5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles (continued)

Information regarding other intangibles was as follows:

Years Ended December 31,

2018 2017 2016 (In millions)DSI: Balance at January 1, $ 220 $ 241 $ 242Capitalization 7 16 22Amortization (33) (29) (23)Unrealized investment gains (losses) 16 (6) —Effect of foreign currency translation — (2) —Balance at December 31, $ 210 $ 220 $ 241

VODA and VOCRA: Balance at January 1, $ 459 $ 509 $ 583Amortization (47) (51) (57)Effect of foreign currency translation (28) 1 (17)Balance at December 31, $ 384 $ 459 $ 509

Accumulated amortization $ 392 $ 345 $ 294

Negative VOBA: Balance at January 1, $ 827 $ 935 $ 1,193Amortization (56) (140) (269)Effect of foreign currency translation and other 8 32 11Balance at December 31, $ 779 $ 827 $ 935

Accumulated amortization $ 3,230 $ 3,174 $ 3,034

The estimated future amortization expense (credit) to be reported in other expenses for the next five years was as follows:

VOBA VODA and VOCRA Negative VOBA (In millions)2019 $ 267 $ 42 $ (41)2020 $ 247 $ 38 $ (41)2021 $ 223 $ 35 $ (39)2022 $ 209 $ 32 $ (37)2023 $ 195 $ 29 $ (36)

6. Reinsurance

The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider ofreinsurance for some insurance products issued by third parties. The Company participates in reinsurance activities in order to limit losses, minimize exposure tosignificant risks and provide additional capacity for future growth.

Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business andthe potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptionsused to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreementsusing criteria similar to that evaluated in the security impairment process discussed in Note 8 .

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Notes to the Consolidated Financial Statements — (continued)

6. Reinsurance (continued)

U.S.

For its Group Benefits business, the Company generally retains most of the risk and only cedes particular risk on certain client arrangements. The majority ofthe Company’s reinsurance activity within this business relates to client agreements for employer sponsored captive programs, risk-sharing agreements andmultinational pooling.

The Company, through its Property & Casualty business, purchases reinsurance to manage its exposure to large losses (primarily catastrophe losses) and toprotect statutory surplus. The Company cedes losses and premiums based upon the exposure of the policies subject to reinsurance. To manage exposure to largeproperty & casualty losses, the Company purchases property catastrophe, casualty and property per risk excess of loss reinsurance protection.

The Company’s RIS business has periodically engaged in reinsurance activities on an opportunistic basis. There were no such transactions during the periodspresented.

Asia,LatinAmericaandEMEA

For certain of its life insurance products, the Company currently reinsures risks in excess of $5 million to external reinsurers on a yearly renewable term basis.For selected large corporate clients, the Company reinsures group employee benefits or credit insurance business with various client-affiliated reinsurancecompanies, covering policies issued to the employees or customers of the clients. Additionally, the Company cedes and assumes risk with other insurancecompanies when either company requires a business partner with the appropriate local licensing to issue certain types of policies in certain jurisdictions. In thesecases, the assuming company typically underwrites the risks, develops the products and assumes most or all of the risk. The Company also has reinsuranceagreements in-force that reinsure a portion of the living and death benefit guarantees issued in connection with variable annuity products. Under these agreements,the Company pays reinsurance fees associated with the guarantees collected from policyholders, and receives reimbursement for benefits paid or accrued in excessof account values, subject to certain limitations. The Company may also reinsure certain risks with external reinsurers depending upon the nature of the risk andlocal regulatory requirements.

MetLifeHoldings

For its life products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis. In addition toreinsuring mortality risk as described above, the Company reinsures other risks, as well as specific coverages. Placement of reinsurance is done primarily on anautomatic basis and also on a facultative basis for risks with specified characteristics. The Company also assumes portions of the risk associated with certain wholelife policies issued by a former affiliate and reinsures certain term life policies and universal life policies with secondary death benefit guarantees to such formeraffiliate.

For its other products, the Company has a reinsurance agreement in-force to reinsure the living and death benefit guarantees issued in connection with certainvariable annuity guarantees from the Company’s former operating joint venture in Japan. Under this agreement, the Company receives reinsurance fees associatedwith the guarantees collected from policyholders, and provides reimbursement for benefits paid or accrued in excess of account values, subject to certainlimitations.

CatastropheCoverage

The Company has exposure to catastrophes which could contribute to significant fluctuations in the Company’s results of operations. For the U.S. and EMEA,the Company purchases catastrophe coverage to reinsure risks issued within territories that the Company believes are subject to the greatest catastrophic risks. Forits other segments, the Company uses excess of retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposureto larger risks. Excess of retention reinsurance agreements provide for a portion of a risk to remain with the direct writing company and quota share reinsuranceagreements provide for the direct writing company to transfer a fixed percentage of all risks of a class of policies.

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Notes to the Consolidated Financial Statements — (continued)

6. Reinsurance (continued)

ReinsuranceRecoverables

The Company reinsures its business through a diversified group of well-capitalized reinsurers. The Company analyzes recent trends in arbitration and litigationoutcomes in disputes, if any, with its reinsurers. The Company monitors ratings and evaluates the financial strength of its reinsurers by analyzing their financialstatements. In addition, the reinsurance recoverable balance due from each reinsurer is evaluated as part of the overall monitoring process. Recoverability ofreinsurance recoverable balances is evaluated based on these analyses. The Company generally secures large reinsurance recoverable balances with various formsof collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. These reinsurance recoverable balances are stated net of allowancesfor uncollectible reinsurance, which at December 31, 2018 and 2017 , were not significant.

The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts andirrevocable letters of credit. The Company had $3.4 billion and $3.5 billion of unsecured reinsurance recoverable balances at December 31, 2018 and 2017 ,respectively.

At December 31, 2018 , the Company had $7.5 billion of net ceded reinsurance recoverables. Of this total, $4.5 billion , or 60% , were with the Company’sfive largest ceded reinsurers, including $1.1 billion of net ceded reinsurance recoverables which were unsecured. At December 31, 2017 , the Company had$7.2 billion of net ceded reinsurance recoverables. Of this total, $4.4 billion , or 61% , were with the Company’s five largest ceded reinsurers, including$1.5 billion of net ceded reinsurance recoverables which were unsecured.

The Company has reinsured with an unaffiliated third-party reinsurer, 59.25% of the closed block through a modified coinsurance agreement. The Companyaccounts for this agreement under the deposit method of accounting. The Company, having the right of offset, has offset the modified coinsurance deposit with thedeposit recoverable.

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Notes to the Consolidated Financial Statements — (continued)

6. Reinsurance (continued)

The amounts on the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance wasas follows:

Years Ended December 31,

2018 2017 2016 (In millions)Premiums Direct premiums $ 44,199 $ 39,595 $ 37,975Reinsurance assumed 2,021 1,773 1,363Reinsurance ceded (2,380) (2,376) (2,136)

Net premiums $ 43,840 $ 38,992 $ 37,202

Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees $ 6,008 $ 5,978 $ 5,884Reinsurance assumed 86 83 96Reinsurance ceded (592) (551) (497)

Net universal life and investment-type product policy fees $ 5,502 $ 5,510 $ 5,483

Policyholder benefits and claims Direct policyholder benefits and claims $ 43,456 $ 39,354 $ 37,186Reinsurance assumed 1,583 1,388 1,085Reinsurance ceded (2,383) (2,429) (1,913)

Net policyholder benefits and claims $ 42,656 $ 38,313 $ 36,358

Other expenses Direct other expenses $ 13,704 $ 13,610 $ 13,958Reinsurance assumed 321 246 169Reinsurance ceded (311) (235) (378)

Net other expenses $ 13,714 $ 13,621 $ 13,749

The amounts on the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as followsat:

December 31,

2018 2017

Direct Assumed Ceded

Total Balance

Sheet Direct Assumed Ceded

Total Balance

Sheet (In millions)Assets Premiums, reinsurance and other receivables $ 5,988 $ 1,603 $ 12,053 $ 19,644 $ 6,300 $ 866 $ 11,257 $ 18,423Deferred policy acquisition costs and value of business

acquired 18,812 385 (302) 18,895 18,350 398 (329) 18,419Total assets $ 24,800 $ 1,988 $ 11,751 $ 38,539 $ 24,650 $ 1,264 $ 10,928 $ 36,842

Liabilities Future policy benefits $ 183,367 $ 3,413 $ — $ 186,780 $ 174,694 $ 3,280 $ — $ 177,974Policyholder account balances 183,207 488 (2) 183,693 182,226 293 (1) 182,518Other policy-related balances 15,519 986 24 16,529 14,962 520 33 15,515Other liabilities 14,848 2,131 5,985 22,964 17,077 1,896 5,009 23,982

Total liabilities $ 396,941 $ 7,018 $ 6,007 $ 409,966 $ 388,959 $ 5,989 $ 5,041 $ 399,989

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Notes to the Consolidated Financial Statements — (continued)

6. Reinsurance (continued)

Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the depositmethod of accounting. The deposit assets on reinsurance were $2.7 billion and $2.8 billion at December 31, 2018 and 2017 , respectively. The deposit liabilities onreinsurance were $1.4 billion at both December 31, 2018 and 2017 .

7. Closed Block

On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company (“MLIC”) converted from a mutual life insurance company to a stocklife insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent ofInsurance approving MLIC’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, MLIC established a closed blockfor the benefit of holders of certain individual life insurance policies of MLIC. Assets have been allocated to the closed block in an amount that has beendetermined to produce cash flows which, together with anticipated revenues from the policies included in the closed block, are reasonably expected to be sufficientto support obligations and liabilities relating to these policies, including, but not limited to, provisions for the payment of claims and certain expenses and taxes,and to provide for the continuation of policyholder dividend scales in effect for 1999, if the experience underlying such dividend scales continues, and forappropriate adjustments in such scales if the experience changes. At least annually, the Company compares actual and projected experience against the experienceassumed in the then-current dividend scales. Dividend scales are adjusted periodically to give effect to changes in experience.

The closed block assets, the cash flows generated by the closed block assets and the anticipated revenues from the policies in the closed block will benefit onlythe holders of the policies in the closed block. To the extent that, over time, cash flows from the assets allocated to the closed block and claims and otherexperience related to the closed block are, in the aggregate, more or less favorable than what was assumed when the closed block was established, total dividendspaid to closed block policyholders in the future may be greater than or less than the total dividends that would have been paid to these policyholders if thepolicyholder dividend scales in effect for 1999 had been continued. Any cash flows in excess of amounts assumed will be available for distribution over time toclosed block policyholders and will not be available to stockholders. If the closed block has insufficient funds to make guaranteed policy benefit payments, suchpayments will be made from assets outside of the closed block. The closed block will continue in effect as long as any policy in the closed block remains in-force.The expected life of the closed block is over 100 years from the Demutualization Date.

The Company uses the same accounting principles to account for the participating policies included in the closed block as it used prior to the DemutualizationDate. However, the Company establishes a policyholder dividend obligation for earnings that will be paid to policyholders as additional dividends as describedbelow. The excess of closed block liabilities over closed block assets at the Demutualization Date (adjusted to eliminate the impact of related amounts in AOCI)represents the estimated maximum future earnings from the closed block expected to result from operations, attributed net of income tax, to the closed block.Earnings of the closed block are recognized in income over the period the policies and contracts in the closed block remain in-force. Management believes thatover time the actual cumulative earnings of the closed block will approximately equal the expected cumulative earnings due to the effect of dividend changes. If,over the period the closed block remains in existence, the actual cumulative earnings of the closed block are greater than the expected cumulative earnings of theclosed block, the Company will pay the excess to closed block policyholders as additional policyholder dividends unless offset by future unfavorable experience ofthe closed block and, accordingly, will recognize only the expected cumulative earnings in income with the excess recorded as a policyholder dividend obligation.If over such period, the actual cumulative earnings of the closed block are less than the expected cumulative earnings of the closed block, the Company willrecognize only the actual earnings in income. However, the Company may change policyholder dividend scales in the future, which would be intended to increasefuture actual earnings until the actual cumulative earnings equal the expected cumulative earnings.

Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact thepolicyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expectedearnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block.

Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closedblock based on the nature of the particular item.

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Notes to the Consolidated Financial Statements — (continued)

7. Closed Block (continued)

Information regarding the closed block liabilities and assets designated to the closed block was as follows at:

December 31,

2018 2017 (In millions)Closed Block Liabilities Future policy benefits $ 40,032 $ 40,463Other policy-related balances 317 222Policyholder dividends payable 431 437Policyholder dividend obligation 428 2,121Deferred income tax liability 28 —Other liabilities 328 212

Total closed block liabilities 41,564 43,455Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value 25,354 27,904Equity securities, at estimated fair value 61 70Contractholder-directed equity securities and fair value option securities, at estimated fair value 43 —Mortgage loans 6,778 5,878Policy loans 4,527 4,548Real estate and real estate joint ventures 544 613Other invested assets 643 731

Total investments 37,950 39,744Accrued investment income 443 477Premiums, reinsurance and other receivables; cash and cash equivalents 83 14Current income tax recoverable 69 35Deferred income tax asset — 36

Total assets designated to the closed block 38,545 40,306Excess of closed block liabilities over assets designated to the closed block 3,019 3,149

Amounts included in AOCI: Unrealized investment gains (losses), net of income tax 1,089 1,863Unrealized gains (losses) on derivatives, net of income tax 86 (7)Allocated to policyholder dividend obligation, net of income tax (338) (1,379)

Total amounts included in AOCI 837 477Maximum future earnings to be recognized from closed block assets and liabilities $ 3,856 $ 3,626

See Note 1 for discussion of new accounting guidance related to U.S. Tax Reform.

Information regarding the closed block policyholder dividend obligation was as follows:

Years Ended December 31,

2018 2017 2016 (In millions)Balance at January 1, $ 2,121 $ 1,931 $ 1,783Change in unrealized investment and derivative gains (losses) (1,693) 190 148Balance at December 31, $ 428 $ 2,121 $ 1,931

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Notes to the Consolidated Financial Statements — (continued)

7. Closed Block (continued)

Information regarding the closed block revenues and expenses was as follows:

Years Ended December 31,

2018 2017 2016 (In millions)Revenues Premiums $ 1,672 $ 1,736 $ 1,804Net investment income 1,758 1,818 1,902Net investment gains (losses) (71) 1 (10)Net derivative gains (losses) 22 (32) 25

Total revenues 3,381 3,523 3,721Expenses Policyholder benefits and claims 2,475 2,453 2,563Policyholder dividends 968 976 953Other expenses 117 125 133

Total expenses 3,560 3,554 3,649Revenues, net of expenses before provision for income tax expense (benefit) (179) (31) 72

Provision for income tax expense (benefit) (39) 12 24Revenues, net of expenses and provision for income tax expense (benefit) $ (140) $ (43) $ 48

MLIC charges the closed block with federal income taxes, state and local premium taxes and other state or local taxes, as well as investment managementexpenses relating to the closed block as provided in the Plan of Reorganization. MLIC also charges the closed block for expenses of maintaining the policiesincluded in the closed block.

8. Investments

See Note 10 for information about the fair value hierarchy for investments and the related valuation methodologies.

InvestmentRisksandUncertainties

Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financialstatement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certaininvestments in times of strained market conditions, the recognition of impairments, the recognition of income on certain investments and the potentialconsolidation of VIEs. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on theamounts presented within the consolidated financial statements.

The determination of valuation allowances and impairments is highly subjective and is based upon periodic evaluations and assessments of known andinherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomesavailable.

The recognition of income on certain investments (e.g. structured securities, including mortgage-backed securities, asset-backed securities (“ABS”), certainstructured investment transactions and FVO Securities) is dependent upon certain factors such as prepayments and defaults, and changes in such factors couldresult in changes in amounts to be earned.

FixedMaturitySecuritiesAFS

FixedMaturitySecuritiesAFSbySector

The following table presents the fixed maturity securities AFS by sector. Municipals includes taxable and tax-exempt revenue bonds, and to a much lesserextent, general obligations of states, municipalities and political subdivisions. Redeemable preferred stock is reported within U.S. corporate and foreigncorporate fixed maturity securities AFS. Included within fixed maturity securities AFS are structured securities including RMBS, ABS and commercialmortgage-backed securities (“CMBS”) (collectively, “Structured Securities”).

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

December 31, 2018 December 31, 2017

Amortized

Cost

Gross Unrealized Estimated

FairValue Amortized

Cost

Gross Unrealized Estimated

FairValue Gains Temporary

Losses OTTI Losses (1) Gains Temporary

Losses OTTI Losses (1)

(In millions)

U.S. corporate $ 77,761 $ 3,467 $ 2,280 $ — $ 78,948 $ 76,005 $ 7,007 $ 351 $ — $ 82,661Foreign government 56,353 6,406 471 — 62,288 55,351 6,495 312 — 61,534Foreign corporate 56,290 2,438 2,025 — 56,703 52,409 3,836 676 — 55,569U.S. government and agency 37,030 2,756 464 — 39,322 43,446 4,227 279 — 47,394RMBS 27,409 920 394 (26) 27,961 27,846 1,145 233 (42) 28,800ABS 12,552 74 153 1 12,472 12,213 116 39 (1) 12,291Municipals 10,376 1,228 71 — 11,533 10,752 1,717 13 1 12,455CMBS 9,045 115 122 — 9,038 8,047 222 42 — 8,227

Total fixed maturity securitiesAFS $ 286,816 $ 17,404 $ 5,980 $ (25) $ 298,265 $ 286,069 $ 24,765 $ 1,945 $ (42) $ 308,931

__________________

(1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition ofnoncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).”

The Company held non-income producing fixed maturity securities AFS with an estimated fair value of $15 million and $6 million with unrealizedgains (losses) of ($1) million and ($4) million at December 31, 2018 and 2017 , respectively.

MethodologyforAmortizationofPremiumandAccretionofDiscountonStructuredSecurities

Amortization of premium and accretion of discount on Structured Securities considers the estimated timing and amount of prepayments of the underlyingloans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated andthe actual prepayments received and currently anticipated. Prepayment assumptions for Structured Securities are estimated using inputs obtained from third-partyspecialists and based on management’s knowledge of the current market. For credit-sensitive and certain prepayment-sensitive Structured Securities, theeffective yield is recalculated on a prospective basis. For all other Structured Securities, the effective yield is recalculated on a retrospective basis.

MaturitiesofFixedMaturitySecuritiesAFS

The amortized cost and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at December 31, 2018 :

Due in One Year

or Less

Due After OneYear Through Five

Years

Due After FiveYears Through

Ten Years Due After Ten

Years StructuredSecurities

Total FixedMaturity

Securities AFS (In millions)Amortized cost $ 12,704 $ 54,663 $ 59,986 $ 110,457 $ 49,006 $ 286,816

Estimated fair value $ 12,734 $ 55,876 $ 61,116 $ 119,068 $ 49,471 $ 298,265

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities AFS not due at a singlematurity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity.

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

ContinuousGrossUnrealizedLossesforFixedMaturitySecuritiesAFSbySector

The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position, aggregatedby sector and by length of time that the securities have been in a continuous unrealized loss position at:

December 31, 2018 December 31, 2017

Less than 12 MonthsEqual to or Greater than 12

Months Less than 12 MonthsEqual to or Greater than 12

Months

EstimatedFair Value

GrossUnrealized

LossesEstimatedFair Value

GrossUnrealized

LossesEstimatedFair Value

GrossUnrealized

LossesEstimatedFair Value

GrossUnrealized

Losses (Dollars in millions) U.S. corporate $ 32,430 $ 1,663 $ 5,826 $ 617 $ 5,604 $ 92 $ 4,115 $ 259Foreign government 4,392 243 2,902 228 4,234 83 3,251 229Foreign corporate 19,564 1,230 5,765 795 4,422 99 6,802 577U.S. government and agency 6,813 58 8,937 406 18,273 93 3,560 186RMBS 6,506 120 6,423 248 6,359 50 4,159 141ABS 8,230 138 392 16 1,695 7 729 31Municipals 1,380 46 349 25 182 2 346 12CMBS 3,893 67 707 55 1,174 9 413 33

Total fixed maturity securities AFS $ 83,208 $ 3,565 $ 31,301 $ 2,390 $ 41,943 $ 435 $ 23,375 $ 1,468

Total number of securities in anunrealized loss position 6,913 2,335 2,598 1,955

EvaluationofFixedMaturitySecuritiesAFSforOTTIandEvaluatingTemporarilyImpairedFixedMaturitySecuritiesAFS

Evaluation and Measurement Methodologies

Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimatedfair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions andestimates about the operations of the issuer and its future earnings potential. Considerations used in the impairment evaluation process include, but are notlimited to: (i) the length of time and the extent to which the estimated fair value has been below amortized cost; (ii) the potential for impairments when theissuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential forimpairments in certain economically depressed geographic locations; (v) the potential for impairments where the issuer, series of issuers or industry hassuffered a catastrophic loss or has exhausted natural resources; (vi) whether the Company has the intent to sell or will more likely than not be required to sell aparticular security before the decline in estimated fair value below amortized cost recovers; (vii) with respect to Structured Securities, changes in forecastedcash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of thepayment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security; (viii) the potentialfor impairments due to weakening of foreign currencies on non-functional currency denominated securities that are near maturity; and (ix) other subjectivefactors, including concentrations and information obtained from regulators and rating agencies.

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

The methodology and significant inputs used to determine the amount of credit loss are as follows:

• The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discountrate is generally the effective interest rate of the security prior to impairment.

• When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overallimpairment evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in whichthe security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived frommanagement’s best estimates of likely scenario-based outcomes after giving consideration to a variety of variables that include, but are not limited to:payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any creditenhancements; the security’s position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes tothe rating of the security or the issuer by rating agencies.

• Additional considerations are made when assessing the unique features that apply to certain Structured Securities including, but not limited to: the qualityof underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans orassets backing a particular security, and the payment priority within the tranche structure of the security.

• When determining the amount of the credit loss for the following types of securities: U.S. and foreign corporate, foreign government and municipals, theestimated fair value is considered the recovery value when available information does not indicate that another value is more appropriate. Wheninformation is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value thesame considerations utilized in its overall impairment evaluation process as described above, as well as any private and public sector programs torestructure such securities.

With respect to securities that have attributes of debt and equity (“perpetual hybrid securities”), consideration is given in the OTTI analysis as to whetherthere has been any deterioration in the credit of the issuer and the likelihood of recovery in value of the securities that are in a severe and extended unrealizedloss position. Consideration is also given as to whether any perpetual hybrid securities with an unrealized loss, regardless of credit rating, have deferred anydividend payments. When an OTTI loss has occurred, the OTTI loss is the entire difference between the perpetual hybrid security’s cost and its estimated fairvalue with a corresponding charge to earnings.

The amortized cost of securities is adjusted for OTTI in the period in which the determination is made. The Company does not change the revised costbasis for subsequent recoveries in value.

In periods subsequent to the recognition of OTTI on a security, the Company accounts for the impaired security as if it had been purchased on themeasurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted over the remaining term of thesecurity in a prospective manner based on the amount and timing of estimated future cash flows.

Current Period Evaluation

Based on the Company’s current evaluation of its securities in an unrealized loss position in accordance with its impairment policy, and the Company’scurrent intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Companyconcluded that these securities were not other-than-temporarily impaired at December 31, 2018 . Future OTTI will depend primarily on economicfundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), and changes in credit ratings,collateral valuation and foreign currency exchange rates. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI maybe incurred in upcoming periods.

Gross unrealized losses on fixed maturity securities AFS increased $4.1 billion during the year ended December 31, 2018 to $6.0 billion . The increase ingross unrealized losses for the year ended December 31, 2018 was primarily attributable to increases in interest rates, widening credit spreads and, to a lesserextent, the impact of weakening of certain foreign currencies on non-functional currency denominated fixed maturity securities AFS.

At December 31, 2018 , $155 million of the total $6.0 billion of gross unrealized losses were from 42 fixed maturity securities AFS with an unrealizedloss position of 20% or more of amortized cost for six months or greater.

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

Investment Grade Fixed Maturity Securities AFS

Of the $155 million of gross unrealized losses on fixed maturity securities AFS with an unrealized loss of 20% or more of amortized cost for six monthsor greater, $91 million , or 59% , were related to gross unrealized losses on 20 investment grade fixed maturity securities AFS. Unrealized losses oninvestment grade fixed maturity securities AFS are principally related to widening credit spreads since purchase and, with respect to fixed-rate fixed maturitysecurities AFS, rising interest rates since purchase.

Below Investment Grade Fixed Maturity Securities AFS

Of the $155 million of gross unrealized losses on fixed maturity securities AFS with an unrealized loss of 20% or more of amortized cost for six monthsor greater, $64 million , or 41% , were related to gross unrealized losses on 22 below investment grade fixed maturity securities AFS. Unrealized losses onbelow investment grade fixed maturity securities AFS are principally related to U.S. and foreign corporate securities (primarily industrial and utility securities)and CMBS and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and marketuncertainty. Management evaluates U.S. and foreign corporate securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuers and evaluates CMBS based on actual and projected cash flows after considering the quality of underlyingcollateral, expected prepayment speeds, current and forecasted loss severity, the payment terms of the underlying assets backing a particular security and thepayment priority within the tranche structure of the security.

EquitySecurities

Equity securities are summarized as follows at:

December 31, 2018 December 31, 2017

EstimatedFair

Value % ofTotal

EstimatedFair

Value % ofTotal

(Dollars in millions)

Common stock $ 1,037 72.0% $ 2,035 81.0%Non-redeemable preferred stock 403 28.0 478 19.0

Total equity securities $ 1,440 100.0% $ 2,513 100.0%

In connection with the adoption of new guidance related to the recognition and measurement of financial instruments (see Note 1 ), effective January 1, 2018,the Company has reclassified its investment in common stock in FHLB from equity securities to other invested assets. These investments are carried at redemptionvalue and are considered restricted investments until redeemed by the respective FHLBanks. The carrying value of these investments at December 31, 2017 was$792 million .

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

MortgageLoans

MortgageLoansbyPortfolioSegment

Mortgage loans are summarized as follows at:

December 31,

2018 2017

Carrying

Value % of Total

Carrying Value

% of Total

(Dollars in millions)Mortgage loans: Commercial $ 48,463 64.0 % $ 44,375 64.6 %Agricultural 14,905 19.7 13,014 18.9Residential 12,427 16.4 11,136 16.2

Total recorded investment 75,795 100.1 68,525 99.7Valuation allowances (342) (0.5) (314) (0.5)

Subtotal mortgage loans, net 75,453 99.6 68,211 99.2Residential — FVO 299 0.4 520 0.8

Total mortgage loans, net $ 75,752 100.0 % $ 68,731 100.0 %

I nformation on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on residential mortgage loans — FVOis presented in Note 10 . The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis.

The amount of net discounts, included within total recorded investment, is primarily attributable to residential mortgage loans, and at December 31, 2018and 2017 was $944 million and $1.1 billion , respectively.

The carrying value of foreclosed mortgage loans included in real estate and real estate joint ventures was $45 million and $48 million at December 31, 2018and 2017 , respectively.

Purchases of mortgage loans, primarily residential, were $3.5 billion , $3.1 billion and $2.9 billion for the years ended December 31, 2018 , 2017 and 2016 ,respectively.

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

MortgageLoans,ValuationAllowanceandImpairedLoansbyPortfolioSegment

Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debtrestructuring, and the related valuation allowances, were as follows at and for the years ended:

Evaluated Individually for Credit Losses Evaluated Collectively for Credit Losses Impaired Loans

Impaired Loans with a Valuation Allowance Impaired Loans without aValuation Allowance

Unpaid

PrincipalBalance Recorded

Investment Valuation Allowances

UnpaidPrincipalBalance Recorded

Investment Recorded Investment Valuation

Allowances Carrying Value

Average Recorded Investment

(In millions)

December 31, 2018 Commercial $ — $ — $ — $ — $ — $ 48,463 $ 238 $ — $ —Agricultural 31 31 3 169 169 14,705 43 197 123Residential — — — 431 386 12,041 58 386 358

Total $ 31 $ 31 $ 3 $ 600 $ 555 $ 75,209 $ 339 $ 583 $ 481

December 31, 2017 Commercial $ — $ — $ — $ — $ — $ 44,375 $ 214 $ — $ 5Agricultural 22 21 2 27 27 12,966 39 46 32Residential — — — 358 324 10,812 59 324 285

Total $ 22 $ 21 $ 2 $ 385 $ 351 $ 68,153 $ 312 $ 370 $ 322

The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $90 million , $49 million and $188 million ,respectively, for the year ended December 31, 2016 .

ValuationAllowanceRollforwardbyPortfolioSegment

The changes in the valuation allowance, by portfolio segment, were as follows:

Commercial Agricultural Residential Total (In millions)Balance at January 1, 2016 $ 188 $ 37 $ 56 $ 281Provision (release) (1) 157 3 23 183Charge-offs, net of recoveries (1) (143) (1) (16) (160)Balance at December 31, 2016 202 39 63 304Provision (release) 12 4 8 24Charge-offs, net of recoveries — (2) (12) (14)Balance at December 31, 2017 214 41 59 314Provision (release) 24 5 7 36Charge-offs, net of recoveries — — (8) (8)Balance at December 31, 2018 $ 238 $ 46 $ 58 $ 342__________________

(1) In connection with an acquisition in 2010, certain impaired commercial mortgage loans were acquired and accordingly, were not originated by theCompany. Such commercial mortgage loans have been accounted for as purchased credit impaired (“PCI”) commercial mortgage loans. Decreases in cashflows expected to be collected on PCI commercial mortgage loans can result in provisions for losses on mortgage loans. For the year ended December 31,2016 , in connection with the maturity of an acquired PCI commercial mortgage loan, an increase to the commercial mortgage loan valuation allowance of$143 million was recorded and charged-off upon maturity. The Company has recovered a substantial portion of the loss on the loan incurred through anindemnification agreement entered into in connection with the acquisition in 2010 .

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

Valuation Allowance Methodology

Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collectall amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for all three portfolio segments as theexcess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) theestimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan’sobservable market price. A common evaluation framework is used for establishing non-specific valuation allowances for all loan portfolio segments; however,a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfoliosegment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific riskhas not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specificfactors, including the Company’s experience with loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. Theseevaluations are revised as conditions change and new information becomes available.

Commercial and Agricultural Mortgage Loan Portfolio Segments

The Company typically uses several years of historical experience in establishing non-specific valuation allowances which capture multiple economiccycles. For evaluations of commercial mortgage loans, in addition to historical experience, management considers factors that include the impact of a rapidchange to the economy, which may not be reflected in the loan portfolio, and recent loss and recovery trend experience as compared to historical loss andrecovery experience. For evaluations of agricultural mortgage loans, in addition to historical experience, management considers factors that include increasedstress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. On a quarterly basis,management incorporates the impact of these current market events and conditions on historical experience in determining the non-specific valuationallowance established for commercial and agricultural mortgage loans.

All commercial mortgage loans are reviewed on an ongoing basis which may include an analysis of the property financial statements and rent roll, leaserollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios, andtenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or inforeclosure, as well as loans with higher loan-to-value ratios and lower debt service coverage ratios. All agricultural mortgage loans are monitored on anongoing basis. The monitoring process for agricultural mortgage loans is generally similar to the commercial mortgage loan monitoring process, with a focuson higher risk loans, including reviews on a geographic and property-type basis. Higher risk loans are reviewed individually on an ongoing basis for potentialcredit loss and specific valuation allowances are established using the methodology described above. Quarterly, the remaining loans are reviewed on a poolbasis by aggregating groups of loans that have similar risk characteristics for potential credit loss, and non-specific valuation allowances are established asdescribed above using inputs that are unique to each segment of the loan portfolio.

For commercial mortgage loans, the primary credit quality indicator is the debt service coverage ratio, which compares a property’s net operating incometo amounts needed to service the principal and interest due under the loan. Generally, the lower the debt service coverage ratio, the higher the risk ofexperiencing a credit loss. The Company also reviews the loan-to-value ratio of its commercial mortgage loan portfolio. Loan-to-value ratios compare theunpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the loan-to-value ratio, the higher the risk ofexperiencing a credit loss. The debt service coverage ratio and the values utilized in calculating the ratio are updated annually on a rolling basis, with a portionof the portfolio updated each quarter. In addition, the loan-to-value ratio is routinely updated for all but the lowest risk loans as part of the Company’s ongoingreview of its commercial mortgage loan portfolio.

For agricultural mortgage loans, the Company’s primary credit quality indicator is the loan-to-value ratio. The values utilized in calculating this ratio aredeveloped in connection with the ongoing review of the agricultural mortgage loan portfolio and are routinely updated.

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

Residential Mortgage Loan Portfolio Segment

The Company’s residential mortgage loan portfolio is comprised primarily of closed end, amortizing residential mortgage loans. For evaluations ofresidential mortgage loans, the key inputs of expected frequency and expected loss reflect current market conditions, with expected frequency adjusted, whenappropriate, for differences from market conditions and the Company’s historical experience. In contrast to the commercial and agricultural mortgage loanportfolios, residential mortgage loans are smaller-balance homogeneous loans that are collectively evaluated for impairment. Non-specific valuationallowances are established using the evaluation framework described above for pools of loans with similar risk characteristics from inputs that are unique tothe residential segment of the loan portfolio. Loan specific valuation allowances are only established on residential mortgage loans when they have beenrestructured and are established using the methodology described above for all loan portfolio segments.

For residential mortgage loans, the Company’s primary credit quality indicator is whether the loan is performing or nonperforming. The Companygenerally defines nonperforming residential mortgage loans as those that are 60 or more days past due and/or in nonaccrual status which is assessed monthly.Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss.

CreditQualityofCommercialMortgageLoans

The credit quality of commercial mortgage loans was as follows at:

Recorded Investment Estimated

Fair Value

% of Total

Debt Service Coverage Ratios

Total % ofTotal > 1.20x 1.00x - 1.20x < 1.00x

(Dollars in millions)December 31, 2018 Loan-to-value ratios: Less than 65% $ 40,360 $ 827 $ 101 $ 41,288 85.2% $ 41,599 85.3%65% to 75% 5,790 — 25 5,815 12.0 5,849 12.076% to 80% 423 209 56 688 1.4 664 1.4Greater than 80% 496 176 — 672 1.4 635 1.3

Total $ 47,069 $ 1,212 $ 182 $ 48,463 100.0% $ 48,747 100.0%

December 31, 2017 Loan-to-value ratios: Less than 65% $ 37,073 $ 1,483 $ 201 $ 38,757 87.4% $ 39,528 87.7%65% to 75% 4,183 98 119 4,400 9.9 4,408 9.876% to 80% 235 210 57 502 1.1 476 1.0Greater than 80% 401 168 147 716 1.6 672 1.5

Total $ 41,892 $ 1,959 $ 524 $ 44,375 100.0% $ 45,084 100.0%

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

CreditQualityofAgriculturalMortgageLoans

The credit quality of agricultural mortgage loans was as follows at:

December 31,

2018 2017

Recorded

Investment % ofTotal

RecordedInvestment

% ofTotal

(Dollars in millions)Loan-to-value ratios: Less than 65% $ 13,704 92.0% $ 12,347 94.9%65% to 75% 1,145 7.7 618 4.776% to 80% 33 0.2 40 0.3Greater than 80% 23 0.1 9 0.1

Total $ 14,905 100.0% $ 13,014 100.0%

The estimated fair value of agricultural mortgage loans was $14.9 billion and $13.1 billion at December 31, 2018 and 2017 , respectively.

CreditQualityofResidentialMortgageLoans

The credit quality of residential mortgage loans was as follows at:

December 31,

2018 2017

Recorded Investment

% of Total

Recorded Investment

% of Total

(Dollars in millions)Performance indicators: Performing $ 11,956 96.2% $ 10,622 95.4%Nonperforming (1) 471 3.8 514 4.6

Total $ 12,427 100.0% $ 11,136 100.0%__________________

(1) Includes residential mortgage loans in process of foreclosure of $140 million and $133 million at December 31, 2018 and 2017 , respectively.

The estimated fair value of residential mortgage loans was $12.7 billion and $11.6 billion at December 31, 2018 and 2017 , respectively.

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

PastDueandNonaccrualMortgageLoans

The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both December 31,2018 and 2017 . The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residentialmortgage loans — 60 days and agricultural mortgage loans — 90 days. The past due and nonaccrual mortgage loans at recorded investment, prior to valuationallowances, by portfolio segment, were as follows at:

Past Due Greater than 90 Days Past Due and Still

Accruing Interest Nonaccrual

December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 (In millions)Commercial $ 9 $ — $ 9 $ — $ 176 $ —Agricultural 204 134 109 125 105 36Residential 471 514 35 33 436 481

Total $ 684 $ 648 $ 153 $ 158 $ 717 $ 517

MortgageLoansModifiedinaTroubledDebtRestructuring

The Company may grant concessions related to borrowers experiencing financial difficulties, which are classified as troubled debt restructurings. Generally,the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interestrates, and/or a reduction of accrued interest. The amount, timing and extent of the concessions granted are considered in determining any impairment or changesin the specific valuation allowance recorded with the restructuring. Through the continuous monitoring process, a specific valuation allowance may have beenrecorded prior to the quarter when the mortgage loan is modified in a troubled debt restructuring.

For the year ended December 31, 2018 , the Company had 440 residential mortgage loans modified in a troubled debt restructuring with carrying value of$96 million and $92 million pre-modification and post-modification, respectively. For the year ended December 31, 2017 , the Company had 500 residentialmortgage loans modified in a troubled debt restructuring with carrying value of $120 million and $108 million pre-modification and post-modification,respectively. For the years ended December 31, 2018 and 2017 , the Company did not have a significant amount of agricultural mortgage loans and nocommercial mortgage loans modified in a troubled debt restructuring.

For both the years ended December 31, 2018 and 2017 , the Company did not have a significant amount of mortgage loans modified in a troubled debtrestructuring with subsequent payment default.

OtherInvestedAssets

Other invested assets is comprised primarily of freestanding derivatives with positive estimated fair values (see Note 9 ), tax credit and renewable energypartnerships, annuities funding structured settlement claims, leveraged and direct financing leases and operating joint ventures.

TaxCreditPartnerships

The carrying value of tax credit partnerships was $1.7 billion and $1.8 billion at December 31, 2018 and 2017 , respectively. Losses from tax creditpartnerships included within net investment income were $257 million , $259 million , and $167 million for the years ended December 31, 2018 , 2017 and 2016, respectively.

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

LeveragedandDirectFinancingLeases

Investment in leveraged and direct financing leases consisted of the following at:

December 31,

2018 2017

Leveraged

Leases

DirectFinancing

Leases Leveraged

Leases

DirectFinancing

Leases (In millions)Rental receivables, net $ 715 $ 1,855 $ 912 $ 2,303Estimated residual values 807 42 838 42

Subtotal 1,522 1,897 1,750 2,345Unearned income (414) (705) (472) (1,022)

Investment in leases $ 1,108 $ 1,192 $ 1,278 $ 1,323

Rental receivables are generally due in periodic installments. The payment periods for leveraged leases generally range from one to 15 years but in certaincircumstances can be over 25 years, while the payment periods for direct financing leases generally range from one to 25 years but in certain circumstances can beover 25 years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessedmonthly. The Company generally defines nonperforming rental receivables as those that are 90 days or more past due. At both December 31, 2018 and 2017 , allleveraged lease receivables were performing and over 99% of direct financing rental receivables were performing.

The Company’s deferred income tax liability related to leveraged leases was $519 million and $934 million at December 31, 2018 and 2017 , respectively.

The components of income from investment in leveraged and direct financing leases, excluding net investment gains (losses), were as follows:

Years Ended December 31,

2018 2017 2016

Leveraged

Leases

DirectFinancing

Leases Leveraged

Leases

DirectFinancing

Leases Leveraged

Leases

DirectFinancing

Leases (In millions)Lease investment income $ 47 $ 95 $ 19 $ 89 $ 51 $ 51Less: Income tax expense 10 20 7 31 18 18

Lease investment income, net of income tax $ 37 $ 75 $ 12 $ 58 $ 33 $ 33

CashEquivalents

The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at thetime of purchase, was $9.0 billion and $6.2 billion at December 31, 2018 and 2017 , respectively.

NetUnrealizedInvestmentGains(Losses)

Unrealized investment gains (losses) on fixed maturity securities AFS, equity securities and derivatives and the effect on DAC, VOBA, DSI, future policybenefits and the policyholder dividend obligation that would result from the realization of the unrealized gains (losses) are included in net unrealized investmentgains (losses) in AOCI.

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

The components of net unrealized investment gains (losses) included in AOCI were as follows:

Years Ended December 31,

2018 2017 2016 (In millions)Fixed maturity securities AFS $ 11,356 $ 22,645 $ 20,330Fixed maturity securities AFS with noncredit OTTI losses included in AOCI 25 41 8

Total fixed maturity securities AFS 11,381 22,686 20,338Equity securities — 421 485Derivatives 2,127 1,453 2,923Other 290 46 23

Subtotal 13,798 24,606 23,769Amounts allocated from: Future policy benefits 31 (77) (1,114)DAC and VOBA related to noncredit OTTI losses recognized in AOCI — — (3)DAC, VOBA and DSI (1,231) (1,768) (1,430)Policyholder dividend obligation (428) (2,121) (1,931)

Subtotal (1,628) (3,966) (4,478)Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (3) (12) (1)Deferred income tax benefit (expense) (3,502) (6,958) (6,634)

Net unrealized investment gains (losses) 8,665 13,670 12,656Net unrealized investment gains (losses) attributable to noncontrolling interests (10) (8) (6)

Net unrealized investment gains (losses) attributable to MetLife, Inc. $ 8,655 $ 13,662 $ 12,650

Net unrealized investment gains (losses) attributable to MetLife, Inc. in the above table include, on a net of income tax basis, $1,250 million for the year endedDecember 31, 2016 , related to assets and liabilities of a disposed subsidiary.

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

The changes in net unrealized investment gains (losses) were as follows:

Years Ended December 31,

2018 2017 2016 (In millions)Balance at January 1, $ 13,662 $ 12,650 $ 11,769Cumulative effects of changes in accounting principles, net of income tax (Note 1) 1,258 — —Fixed maturity securities AFS on which noncredit OTTI losses have been recognized (16) 33 84Unrealized investment gains (losses) during the year (10,367) 804 2,544Unrealized investment gains (losses) relating to: Future policy benefits 108 1,037 (951)DAC and VOBA related to noncredit OTTI losses recognized in AOCI — 3 (3)DAC, VOBA and DSI 537 (338) (157)Policyholder dividend obligation 1,693 (190) (148)Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 9 (11) (28)Deferred income tax benefit (expense) 1,773 (324) (485)

Net unrealized investment gains (losses) 8,657 13,664 12,625Net unrealized investment gains (losses) attributable to noncontrolling interests (2) (2) 25Balance at December 31, $ 8,655 $ 13,662 $ 12,650

Change in net unrealized investment gains (losses) $ (5,005) $ 1,014 $ 856Change in net unrealized investment gains (losses) attributable to noncontrolling interests (2) (2) 25

Change in net unrealized investment gains (losses) attributable to MetLife, Inc. $ (5,007) $ 1,012 $ 881

Net unrealized investment gains (losses) attributable to MetLife, Inc. in the above table include, on a net of income tax basis, ($304) million for the year endedDecember 31, 2016 , related to assets and liabilities of a disposed subsidiary.

ConcentrationsofCreditRisk

Investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, were in fixed incomesecurities of the Japanese government and its agencies with an estimated fair value of $30.2 billion and $27.5 billion at December 31, 2018 and 2017 , respectively,and in fixed income securities of the South Korean government and its agencies with an estimated fair value of $7.1 billion and $6.5 billion at December 31, 2018and 2017 , respectively.

SecuritiesLendingandRepurchaseAgreements

Securities, Collateral and Reinvestment Portfolio

A summary of the securities lending and repurchase agreements transactions is as follows:

December 31,

2018 2017

Securities on Loan (1) Securities on Loan (1)

Amortized Cost Estimated Fair

Value

Cash CollateralReceived from

Counterparties (2)(3)

ReinvestmentPortfolio at

Estimated FairValue Amortized Cost

Estimated FairValue

Cash CollateralReceived from

Counterparties (2)(3)

ReinvestmentPortfolio at

Estimated FairValue

(In millions) Securities

lending $ 16,969 $ 17,724 $ 18,005 $ 18,074 $ 17,801 $ 19,028 $ 19,417 $ 19,508Repurchase

agreements $ 1,033 $ 1,093 $ 1,067 $ 1,069 $ 994 $ 1,141 $ 1,102 $ 1,102__________________

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

(1) Securities on loan in connection with securities lending are included within fixed maturities securities AFS and securities on loan in connection withrepurchase agreements are included within fixed maturities securities AFS, cash equivalents and short-term investments.

(2) In connection with securities lending, in addition to cash collateral received, the Company received from counterparties security collateral of $78 millionand $19 million at December 31, 2018 and 2017 , respectively , which may not be sold or re-pledged, unless the counterparty is in default, and is notreflected on the consolidated financial statements.

(3) The securities lending liability for cash collateral is included within payables for collateral under securities loaned and other transactions, and the repurchaseagreements liability for cash collateral is included within payables for collateral under securities loaned and other transactions and other liabilities.

Contractual Maturities

A summary of the remaining contractual maturities of securities lending agreements and repurchase agreements is as follow:

December 31,

2018 2017

Remaining Maturities of the Agreements Remaining Maturities of the Agreements

Open (1) 1 Monthor Less

Over 1 to 6

Months Total Open (1) 1 Monthor Less

Over1 to 6

Months Total (In millions)Cash collateral liability by loaned security type:

Securities lending: U.S. government and agency $ 2,736 $ 8,995 $ 5,220 $ 16,951 $ 3,753 $ 6,031 $ 8,607 $ 18,391Foreign government — 214 761 975 — 192 834 1,026Agency RMBS — 79 — 79 — — — —

Total $ 2,736 $ 9,288 $ 5,981 $ 18,005 $ 3,753 $ 6,223 $ 9,441 $ 19,417

Repurchase agreements: U.S. government and agency $ — $ 1,000 $ — $ 1,000 $ — $ 1,005 $ — $ 1,005All other corporate and government — — 67 67 — 44 53 97

Total $ — $ 1,000 $ 67 $ 1,067 $ — $ 1,049 $ 53 $ 1,102__________________

(1) The related loaned security could be returned to the Company on the next business day, which would require the Company to immediately return the cashcollateral.

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it mayhave difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than whatotherwise would have been realized under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral onopen at December 31, 2018 was $2.7 billion , all of which were U.S. government and agency securities which, if put back to the Company, could be immediatelysold to satisfy the cash requirement.

The securities lending and repurchase agreements reinvestment portfolios acquired with the cash collateral consisted principally of high quality, liquid,publicly-traded fixed maturity securities AFS, short-term investments, cash equivalents or held in cash. If the securities on loan or the reinvestment portfoliobecome less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loanare put back to the Company.

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

FHLBofBostonAdvanceAgreements

At December 31, 2018 and 2017 , a subsidiary of the Company had pledged municipals with an estimated fair value of $1.2 billion and $564 million ,respectively, as collateral and received $800 million and $300 million , respectively, in cash advances under short-term advance agreements with the FHLB ofBoston. The liability to return the cash advances is included within payables for collateral under securities loaned and other transactions. The estimated fair valueof the reinvestment portfolio acquired with the cash advances was $799 million and $300 million at December 31, 2018 and 2017, respectively, and consistedprimarily of U.S. government and agency securities and Structured Securities. At December 31, 2018 and 2017, the reinvestment portfolio also included a $33million and $12 million , at redemption value, required investment in FHLB of Boston common stock. The subsidiary is permitted to withdraw any portion of thepledged collateral over the minimum collateral requirement at any time, other than in the event of a default by the subsidiary.

The cash advance liability by loaned security type and remaining contractual maturities of the agreements was as follows at:

December 31, 2018 December 31, 2017

Remaining Maturities of

the Agreements Remaining Maturities of

the Agreements

1 Monthor Less

Over1 to 6

Months 6 Months to

1 Year Total 1 Monthor Less

Over1 to 6

Months 6 Months to

1 Year Total (In millions)Cash advance liability by loaned security type: Municipals $ 150 $ 650 $ — $ 800 $ — $ 300 $ — $ 300

InvestedAssetsonDeposit,HeldinTrustandPledgedasCollateral

Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, whichare presented at carrying value at:

December 31,

2018 2017 (In millions)Invested assets on deposit (regulatory deposits) $ 1,788 $ 1,879Invested assets held in trust (collateral financing arrangement and reinsurance agreements) 2,971 2,490Invested assets pledged as collateral (1) 24,168 24,174

Total invested assets on deposit, held in trust and pledged as collateral $ 28,927 $ 28,543__________________

(1) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 ), derivativetransactions (see Note 9 ), secured debt (see Note 12 ), and a collateral financing arrangement (see Note 13 ).

See “— Securities Lending and Repurchase Agreements” for information regarding securities supporting securities lending and repurchase agreementtransactions and Note 7 for information regarding investments designated to the closed block. In addition, the restricted investment in FHLB common stock was$793 million and $792 million , at redemption value, at December 31, 2018 and 2017 , respectively (see Note 1 ).

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

PurchasedCreditImpairedInvestments

Investments acquired with evidence of credit quality deterioration since origination and for which it is probable at the acquisition date that the Company willbe unable to collect all contractually required payments are classified as PCI investments. For each investment, the excess of the cash flows expected to becollected as of the acquisition date over its acquisition date fair value is referred to as the accretable yield and is recognized as net investment income on aneffective yield basis. If, subsequently, based on current information and events, it is probable that there is a significant increase in cash flows previously expectedto be collected or if actual cash flows are significantly greater than cash flows previously expected to be collected, the accretable yield is adjusted prospectively.The excess of the contractually required payments (including interest) as of the acquisition date over the cash flows expected to be collected as of the acquisitiondate is referred to as the nonaccretable difference, and this amount is not expected to be realized as net investment income. Decreases in cash flows expected to becollected can result in OTTI.

The Company’s PCI investments had an outstanding principal balance of $4.0 billion and $4.8 billion at December 31, 2018 and 2017 , respectively, whichrepresents the contractually required principal and accrued interest payments whether or not currently due and a carrying value (estimated fair value of theinvestments plus accrued interest) of $3.3 billion and $4.0 billion at December 31, 2018 and 2017 , respectively. Accretion of accretable yield on PCI investmentsrecognized in earnings in net investment income was $275 million and $281 million for the years ended December 31, 2018 and 2017 , respectively. Purchases ofPCI investments were insignificant in both of the years ended December 31, 2018 and 2017 .

CollectivelySignificantEquityMethodInvestments

The Company holds investments in real estate joint ventures, real estate funds and other limited partnership interests consisting of leveraged buy-out funds,hedge funds, private equity funds, joint ventures and other funds. The portion of these investments accounted for under the equity method had a carrying value of$14.7 billion at December 31, 2018 . The Company’s maximum exposure to loss related to these equity method investments is limited to the carrying value of theseinvestments plus unfunded commitments of $5.3 billion at December 31, 2018 . Except for certain real estate joint ventures and certain funds, the Company’sinvestments in its remaining real estate funds and other limited partnership interests are generally of a passive nature in that the Company does not participate in themanagement of the entities.

As described in Note 1 , the Company generally records its share of earnings in its equity method investments using a three-month lag methodology andwithin net investment income. Aggregate net investment income from these equity method investments exceeded 10% of the Company’s consolidated pre-taxincome (loss) from continuing operations for two of the three most recent annual periods: 2017 and 2016. The Company is providing the following aggregatedsummarized financial data for such equity method investments, for the most recent annual periods, in order to provide comparative information. This aggregatedsummarized financial data does not represent the Company’s proportionate share of the assets, liabilities, or earnings of such entities.

The aggregated summarized financial data presented below reflects the latest available financial information and is as of, and for, the years endedDecember 31, 2018 , 2017 and 2016 . Aggregate total assets of these entities totaled $529.1 billion and $505.6 billion at December 31, 2018 and 2017 ,respectively. Aggregate total liabilities of these entities totaled $65.5 billion and $68.9 billion at December 31, 2018 and 2017 , respectively. Aggregate net income(loss) of these entities totaled $52.5 billion , $37.9 billion and $26.8 billion for the years ended December 31, 2018 , 2017 and 2016 , respectively, with $270million related to Brighthouse for the year ended December 31, 2016. Aggregate net income (loss) from the underlying entities in which the Company invests isprimarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses).

VariableInterestEntities

The Company has invested in legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of theentity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of theVIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with orinvolvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in theentity.

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

ConsolidatedVIEs

Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as theCompany’s obligation to the VIEs is limited to the amount of its committed investment.

The following table presents the total assets and total liabilities relating to investment related VIEs for which the Company has concluded that it is theprimary beneficiary and which are consolidated at:

December 31,

2018 2017

Total Assets

Total Liabilities

Total Assets

Total Liabilities

(In millions)Renewable energy partnership (1) $ 102 $ — $ 116 $ 3Investment funds (2) 79 1 — —Other investments (1) 21 5 32 6

Total $ 202 $ 6 $ 148 $ 9__________________

(1) Assets of the renewable energy partnership and other investments primarily consisted of other invested assets.

(2) Assets of the investment funds primarily consisted of cash and cash equivalents.

UnconsolidatedVIEs

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primarybeneficiary and which have not been consolidated were as follows at:

December 31,

2018 2017

Carrying Amount

Maximum Exposure to Loss (1)

Carrying Amount

Maximum Exposure to Loss (1)

(In millions)Fixed maturity securities AFS:

Structured Securities (2) $ 47,874 $ 47,874 $ 47,614 $ 47,614U.S. and foreign corporate 932 932 1,560 1,560

Other limited partnership interests 5,641 9,888 4,834 8,543Other invested assets 1,906 2,063 2,291 2,625Other investments 296 300 82 87

Total $ 56,649 $ 61,057 $ 56,381 $ 60,429__________________

(1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. Themaximum exposure to loss relating to other limited partnership interests is equal to the carrying amounts plus any unfunded commitments. For certain of itsinvestments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For suchinvestments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed bythird parties of $94 million and $117 million at December 31, 2018 and 2017 , respectively. Such a maximum loss would be expected to occur only uponbankruptcy of the issuer or investee.

(2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued bytrusts that do not have substantial equity.

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

As described in Note 20 , the Company makes commitments to fund partnership investments in the normal course of business. Excluding thesecommitments, the Company did not provide financial or other support to investees designated as VIEs during each of the years ended December 31, 2018 , 2017and 2016 .

During 2018 and 2017 , the Company securitized certain residential mortgage loans and acquired an interest in the related RMBS issued. While theCompany has a variable interest in the issuer of the securities, it is not the primary beneficiary of the issuer of the securities since it does not have any rights toremove the servicer or veto rights over the servicer’s actions. The carrying value and the estimated fair value of mortgage loans were $451 million and $478million , respectively, for loans sold during 2018 , and $319 million and $339 million , respectively, for loans sold during 2017 . Gains on securitizations of$27 million and $20 million during the years ended December 31, 2018 and 2017 , respectively, were included within net investment gains (losses). Theestimated fair value of RMBS acquired in connection with the securitizations was $98 million and $52 million at December 31, 2018 and 2017 , respectively,which was included in the carrying amount and maximum exposure to loss for Structured Securities presented above. See Note 10 for information on how theestimated fair value of mortgage loans and RMBS is determined, the valuation approaches and key inputs, their placement in the fair value hierarchy, and forcertain RMBS, quantitative information about the significant unobservable inputs and the sensitivity of their estimated fair value to changes in those inputs.

NetInvestmentIncome

The components of net investment income were as follows:

Years Ended December 31,

2018 2017 2016 (In millions)Investment income: Fixed maturity securities AFS $ 11,946 $ 11,497 $ 11,721Equity securities 64 129 121FVO Securities (1) 51 68 37Mortgage loans 3,340 3,082 2,858Policy loans 506 517 511Real estate and real estate joint ventures 694 646 652Other limited partnership interests 731 798 478Cash, cash equivalents and short-term investments 387 228 153Operating joint ventures 51 28 33Other 364 192 248

Subtotal 18,134 17,185 16,812Less: Investment expenses 1,285 1,122 972

Subtotal, net 16,849 16,063 15,840Unit-linked investments (1) (683) 1,300 950

Net investment income $ 16,166 $ 17,363 $ 16,790__________________

(1) Changes in estimated fair value subsequent to purchase for investments still held as of the end of the respective periods included in net investment incomewere principally from Unit-linked investments, and were ($771) million , $662 million and $427 million for the years ended December 31, 2018 , 2017 , and2016 , respectively.

The Company invests in real estate joint ventures, other limited partnership interests and tax credit and renewable energy partnerships, and also does businessthrough certain operating joint ventures, the majority of which are accounted for under the equity method. Net investment income from other limited partnershipinterests and operating joint ventures, accounted for under the equity method; and real estate joint ventures and tax credit and renewable energy partnerships,primarily accounted for under the equity method, totaled $592 million , $495 million and $337 million for the years ended December 31, 2018, 2017 and 2016,respectively.

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

NetInvestmentGains(Losses)

ComponentsofNetInvestmentGains(Losses)

The components of net investment gains (losses) were as follows:

Years Ended December 31,

2018 2017 2016 (In millions)Total gains (losses) on fixed maturity securities AFS: Total OTTI losses recognized — by sector and industry: U.S. and foreign corporate securities — by industry: Consumer $ (20) $ (4) $ —Finance (9) — —Industrial (2) — (63)Utility — — (21)Communications — — (3)

Total U.S. and foreign corporate securities (31) (4) (87)Foreign government (9) — —ABS — (3) (2)RMBS — — (18)Municipals — (3) —

OTTI losses on fixed maturity securities AFS recognized in earnings (40) (10) (107)Fixed maturity securities AFS — net gains (losses) on sales and disposals (1) 45 328 251

Total gains (losses) on fixed maturity securities AFS 5 318 144Total gains (losses) on equity securities: Total OTTI losses recognized — by security type: Common stock — (24) (75)Non-redeemable preferred stock — (1) —

OTTI losses on equity securities recognized in earnings — (25) (75)Equity securities — net gains (losses) on sales and disposals 118 117 19Change in estimated fair value of equity securities (2) (193) — —

Total gains (losses) on equity securities (75) 92 (56)Mortgage loans (1) (56) 14 (231)Real estate and real estate joint ventures 326 603 182Other limited partnership interests 9 (59) (64)Other (169) (113) (130)

Subtotal 40 855 (155)Change in estimated fair value of other limited partnership interests and real estate joint ventures 12 — —Non-investment portfolio gains (losses) (3), (4), (5) (350) (1,162) 471Other — (1) 1

Subtotal (338) (1,163) 472Total net investment gains (losses) $ (298) $ (308) $ 317

__________________

(1) Fixed maturity securities AFS — net gains (losses) on sales and disposals and mortgage loans for the year ended December 31, 2017 , included $276 millionand $47 million , respectively, in previously deferred gains on prior period transfers of such investments to Brighthouse. Such gains are no longer eliminatedin consolidation after the Separation. See Note 3 .

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Notes to the Consolidated Financial Statements — (continued)

8. Investments (continued)

(2) Changes in estimated fair value subsequent to purchase for equity securities still held as of the end of the period included in net investment gains (losses)were ($81) million for the year ended December 31, 2018 . See Note 1 .

(3) Non-investment portfolio gains (losses) for the year ended December 31, 2018 includes a loss of $327 million which represents both the change in estimatedfair value of FVO Brighthouse Common Stock held by the Company through the date of disposal and the loss on disposal in June 2018. Non-investmentportfolio gains (losses) for the year ended December 31, 2017 included (i) a loss of $1,016 million which represents a mark-to-market loss on theCompany’s retained investment in Brighthouse Financial, Inc. at Separation and (ii) a loss of $95 million which represents the change in estimated fair valueof FVO Brighthouse Common Stock held by the Company from the date of Separation to December 31, 2017 . See Note 3 .

(4) Non-investment portfolio gains (losses) for the year ended December 31, 2017 includes a $98 million loss due to the disposition of MetLife Afore. SeeNote 3 .

(5) Non-investment portfolio gains (losses) for the year ended December 31, 2016 includes a gain of $102 million in connection with the U.S. Retail AdvisorForce Divestiture. See Note 3 .

Gains (losses) from foreign currency transactions included within net investment gains (losses) were ($16) million , ($6) million and $225 million for theyears ended December 31, 2018 , 2017 and 2016 , respectively.

SalesorDisposalsandImpairmentsofFixedMaturitySecuritiesAFS

Sales of securities are determined on a specific identification basis. Proceeds from sales or disposals and the components of net investment gains (losses)were as shown in the table below:

Years Ended December 31,

2018 2017 2016 (In millions)Proceeds $ 85,058 $ 56,509 $ 86,179

Gross investment gains $ 856 $ 753 $ 1,048Gross investment losses (811) (425) (797)OTTI losses (40) (10) (107)

Net investment gains (losses) $ 5 $ 318 $ 144

CreditLossRollforward

The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities AFS stillheld for which a portion of the OTTI loss was recognized in OCI:

Years Ended December 31,

2018 2017 (In millions)Balance at January 1, $ 138 $ 187

Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI (47) (48)Increase in cash flows — accretion of previous credit loss OTTI (2) (1)

Balance at December 31, $ 89 $ 138

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives

AccountingforDerivatives

See Note 1 for a description of the Company’s accounting policies for derivatives and Note 10 for information about the fair value hierarchy for derivatives.

DerivativeStrategies

The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equitymarket. The Company uses a variety of strategies to manage these risks, including the use of derivatives.

Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices.Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settledthrough central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivativesthe Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rateswaps to synthetically replicate investment risks and returns which are not readily available in the cash markets.

InterestRateDerivatives

The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, interest rate totalreturn swaps, caps, floors, swaptions, futures and forwards.

Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising frommismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specifiedintervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizesinterest rate swaps in fair value, cash flow and nonqualifying hedging relationships.

The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in thecash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. government and agency, or other fixed maturitysecurities AFS. Structured interest rate swaps are included in interest rate swaps and are not designated as hedging instruments.

Interest rate total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between theeconomic risk and reward of an asset or a market index and a benchmark interest rate, calculated by reference to an agreed notional amount. No cash isexchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. These transactions are entered intopursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate total return swaps are used bythe Company to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities(duration mismatches). The Company utilizes interest rate total return swaps in nonqualifying hedging relationships.

The Company purchases interest rate caps primarily to protect its floating rate liabilities against rises in interest rates above a specified level and againstinterest rate exposure arising from mismatches between assets and liabilities and interest rate floors primarily to protect its minimum rate guarantee liabilitiesagainst declines in interest rates below a specified level. In certain instances, the Company locks in the economic impact of existing purchased caps and floors byentering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in nonqualifying hedging relationships.

In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the valueof which is determined by the different classes of interest rate securities to post variation margin on a daily basis in an amount equal to the difference in the dailymarket values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures withregulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily tohedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value ofsecurities the Company owns or anticipates acquiring, to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swapcurve performance, and to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded interest rate futures in nonqualifying hedging relationships.

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives (continued)

Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is anoption to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchasedswaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions.The Company utilizes swaptions in nonqualifying hedging relationships. Swaptions are included in interest rate options.

The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such acontract is made at a specified future date. The Company utilizes interest rate forwards in cash flow and nonqualifying hedging relationships.

A synthetic GIC is a contract that simulates the performance of a traditional GIC through the use of financial instruments. Under a synthetic GIC, thecontractholder owns the underlying assets. The Company guarantees a rate of return on those assets for a premium. Synthetic GICs are not designated as hedginginstruments.

ForeignCurrencyExchangeRateDerivatives

The Company uses foreign currency exchange rate derivatives, including foreign currency swaps, foreign currency forwards, currency options andexchange-traded currency futures, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated inforeign currencies. The Company also uses foreign currency derivatives to hedge the foreign currency exchange rate risk associated with certain of its netinvestments in foreign operations.

In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency andanother at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency isexchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow andnonqualifying hedging relationships.

In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified futuredate. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreigncurrency forwards in fair value, net investment in foreign operations and nonqualifying hedging relationships.

The Company enters into currency options that give it the right, but not the obligation, to sell the foreign currency amount in exchange for a functionalcurrency amount within a limited time at a contracted price. The contracts may also be net settled in cash, based on differentials in the foreign currency exchangerate and the strike price. The Company uses currency options to hedge against the foreign currency exposure inherent in certain of its variable annuity products.The Company also uses currency options as an economic hedge of foreign currency exposure related to the Company’s non-U.S. subsidiaries. The Companyutilizes currency options in net investment in foreign operations and nonqualifying hedging relationships.

To a lesser extent, the Company uses exchange-traded currency futures to hedge currency mismatches between assets and liabilities, and to hedge minimumguarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded currency futures in nonqualifyinghedging relationships.

CreditDerivatives

The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swaptransaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by thecontract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swapnotional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary bytype of issuer but typically include bankruptcy, failure to pay debt obligations and involuntary restructuring for corporate obligors, as well as repudiation,moratorium or governmental intervention for sovereign obligors. In each case, payout on a credit default swap is triggered only after the Credit DerivativesDeterminations Committee of the International Swaps and Derivatives Association, Inc. (“ISDA”) deems that a credit event has occurred. The Company utilizescredit default swaps in nonqualifying hedging relationships.

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives (continued)

The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwiseunavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. government and agency, orother fixed maturity securities AFS. These credit default swaps are not designated as hedging instruments.

The Company also entered into certain purchased and written credit default swaps held in relation to trading portfolios for the purpose of generating profitson short-term differences in price. These credit default swaps were not designated as hedging instruments. As of December 31 , 2016, the Company no longermaintained a trading portfolio for derivatives.

The Company enters into forwards to lock in the price to be paid for forward purchases of certain securities. The price is agreed upon at the time of thecontract and payment for the contract is made at a specified future date. When the primary purpose of entering into these transactions is to hedge against the riskof changes in purchase price due to changes in credit spreads, the Company designates these transactions as credit forwards. The Company utilizes creditforwards in cash flow hedging relationships.

EquityDerivatives

The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps,exchange-traded equity futures and equity total return swaps.

Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by theCompany. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the underlying equity index within a limited time at acontracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of thesecontracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedgeadverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options innonqualifying hedging relationships.

Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by theCompany. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over adefined period. The Company utilizes equity variance swaps in nonqualifying hedging relationships.

In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined bythe different classes of equity securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of thosecontracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futurescommission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge minimum guarantees embedded in certainvariable annuity products offered by the Company. The Company utilizes exchange-traded equity futures in nonqualifying hedging relationships.

In an equity total return swap, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk andreward of an asset or a market index and a benchmark interest rate, calculated by reference to an agreed notional amount. No cash is exchanged at the outset ofthe contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses equity total return swaps to hedge itsequity market guarantees in certain of its insurance products. Equity total return swaps can be used as hedges or to synthetically create investments. TheCompany utilizes equity total return swaps in nonqualifying hedging relationships.

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives (continued)

PrimaryRisksManagedbyDerivatives

The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excludingembedded derivatives, held at:

Primary Underlying Risk Exposure

December 31,

2018 2017

Estimated Fair Value Estimated Fair Value

GrossNotionalAmount Assets Liabilities

GrossNotionalAmount Assets Liabilities

(In millions)Derivatives Designated as Hedging Instruments: Fair value hedges: Interest rate swaps Interest rate $ 2,446 $ 2,197 $ 2 $ 3,843 $ 2,289 $ 3

Foreign currency swaps Foreign currency exchange rate 1,233 54 — 1,116 50 18

Foreign currency forwards Foreign currency exchange rate 2,140 28 18 3,253 2 37Subtotal 5,819 2,279 20 8,212 2,341 58

Cash flow hedges: Interest rate swaps Interest rate 3,515 143 1 3,584 235 4Interest rate forwards Interest rate 3,022 — 216 3,332 — 128

Foreign currency swaps Foreign currency exchange rate 35,931 1,796 1,831 32,152 1,142 1,665Subtotal 42,468 1,939 2,048 39,068 1,377 1,797

Foreign operations hedges:

Foreign currency forwards Foreign currency exchange rate 960 4 27 332 2 5

Currency options Foreign currency exchange rate 5,137 3 202 9,408 44 163Subtotal 6,097 7 229 9,740 46 168Total qualifying hedges 54,384 4,225 2,297 57,020 3,764 2,023

Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 54,891 1,796 175 60,485 2,203 576Interest rate floors Interest rate 12,701 102 — 7,201 92 —Interest rate caps Interest rate 54,575 154 1 53,079 78 2Interest rate futures Interest rate 2,353 1 3 4,366 2 4Interest rate options Interest rate 26,690 416 — 12,009 656 11Interest rate forwards Interest rate 234 1 15 217 — 42Interest rate total return swaps Interest rate 1,048 33 2 1,048 8 2Synthetic GICs Interest rate 25,700 — — 11,318 — —

Foreign currency swaps Foreign currency exchange rate 11,388 884 458 9,902 693 506

Foreign currency forwards Foreign currency exchange rate 13,417 198 213 12,238 79 190

Currency futures Foreign currency exchange rate 847 4 — 846 2 —

Currency options Foreign currency exchange rate 2,040 7 — 3,123 55 6Credit default swaps — purchased Credit 1,903 25 39 2,020 7 43Credit default swaps — written Credit 11,391 95 13 11,375 271 —Equity futures Equity market 2,992 13 77 4,005 18 4Equity index options Equity market 27,707 884 550 19,886 569 690Equity variance swaps Equity market 2,269 40 87 4,661 54 199

Equity total return swaps Equity market 929 91 — 1,117 — 41Total non-designated or nonqualifying derivatives 253,075 4,744 1,633 218,896 4,787 2,316Total $ 307,459 $ 8,969 $ 3,930 $ 275,916 $ 8,551 $ 4,339

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives (continued)

Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship atboth December 31, 2018 and 2017 . The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to variousrisks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedgeinsurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivativescannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge embedded derivatives that do not qualify forhedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swapsand interest rate swaps that are used to synthetically create investments and that do not qualify for hedge accounting because they do not involve a hedgingrelationship. For these nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations withoutan offsetting gain or loss recognized in earnings for the item being hedged.

NetDerivativeGains(Losses)

The components of net derivative gains (losses) were as follows:

Years Ended December 31,

2018 2017 2016 (In millions)Freestanding derivative and hedging gains (losses) (1) $ 1,001 $ (1,389) $ (509)Embedded derivative gains (losses) (150) 799 (181)

Total net derivative gains (losses) $ 851 $ (590) $ (690)__________________

(1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presentedelsewhere in this note.

The following table presents earned income on derivatives:

Years Ended December 31,

2018 2017 2016 (In millions)Qualifying hedges: Net investment income $ 360 $ 299 $ 267Interest credited to policyholder account balances (113) (64) (1)Other expenses (11) (10) (12)Nonqualifying hedges: Net investment income — — (1)Net derivative gains (losses) 547 551 705Policyholder benefits and claims 11 9 7

Total $ 794 $ 785 $ 965

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives (continued)

NonqualifyingDerivativesandDerivativesforPurposesOtherThanHedging

The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or not qualifying ashedging instruments:

Net Derivative

Gains (Losses)

Net Investment Income (1)

Policyholder Benefits and

Claims (2) (In millions)Year Ended December 31, 2018 Interest rate derivatives $ (158) $ 4 $ (6)Foreign currency exchange rate derivatives 518 — (6)Credit derivatives — purchased 6 — —Credit derivatives — written (132) — —Equity derivatives 360 1 60

Total $ 594 $ 5 $ 48

Year Ended December 31, 2017 Interest rate derivatives $ (549) $ 1 $ (1)Foreign currency exchange rate derivatives (742) — 5Credit derivatives — purchased (24) — —Credit derivatives — written 145 — —Equity derivatives (1,046) (9) (252)

Total $ (2,216) $ (8) $ (248)

Year Ended December 31, 2016 Interest rate derivatives $ (990) $ — $ 46Foreign currency exchange rate derivatives 882 — (18)Credit derivatives — purchased (40) — —Credit derivatives — written 71 — —Equity derivatives (681) (16) (138)

Total $ (758) $ (16) $ (110)__________________

(1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures, derivatives held in relation to trading portfoliosand derivatives held within Unit-linked investments. As of D ecember 31 , 2016, the Company no longer maintained a trading portfolio for derivatives.

(2) Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits.

FairValueHedges

The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swapsto convert fixed rate assets and liabilities to floating rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency fair value exposure offoreign currency denominated assets and liabilities; and (iii) foreign currency forwards to hedge the foreign currency fair value exposure of foreign currencydenominated investments.

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives (continued)

The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The followingtable presents the amount of such net derivative gains (losses):

Derivatives in Fair ValueHedging Relationships

Hedged Items in Fair ValueHedging Relationships

Net DerivativeGains (Losses)

Recognizedfor Derivatives

Net DerivativeGains (Losses)Recognized forHedged Items

IneffectivenessRecognized inNet DerivativeGains (Losses)

(In millions)Year Ended December 31, 2018 Interest rate swaps: Fixed maturity securities AFS $ 1 $ (1) $ —

Policyholder liabilities (1) (221) 227 6Foreign currency swaps:

Foreign-denominated fixed maturity securities AFS and

mortgage loans 55 (57) (2)

Foreign-denominated policyholder account balances (2) 23 (23) —Foreign currency forwards: Foreign-denominated fixed maturity securities AFS 78 (70) 8

Total $ (64) $ 76 $ 12

Year Ended December 31, 2017 Interest rate swaps: Fixed maturity securities AFS $ 4 $ (4) $ —

Policyholder liabilities (1) (69) 134 65Foreign currency swaps: Foreign-denominated fixed maturity securities AFS (27) 29 2

Foreign-denominated policyholder account balances (2) 65 (44) 21Foreign currency forwards: Foreign-denominated fixed maturity securities AFS 13 (11) 2

Total $ (14) $ 104 $ 90

Year Ended December 31, 2016 Interest rate swaps: Fixed maturity securities AFS $ 7 $ (9) $ (2)

Policyholder liabilities (1) (108) 90 (18)Foreign currency swaps: Foreign-denominated fixed maturity securities AFS 13 (12) 1

Foreign-denominated policyholder account balances (2) (95) 92 (3)Foreign currency forwards: Foreign-denominated fixed maturity securities AFS 127 (119) 8

Total $ (56) $ 42 $ (14)__________________

(1) Fixed rate liabilities reported in policyholder account balances or future policy benefits.

(2) Fixed rate or floating rate liabilities.

For the Company’s foreign currency forwards, the change in the estimated fair value of the derivative related to the changes in the difference between the spotprice and the forward price is excluded from the assessment of hedge effectiveness. For all other derivatives, all components of each derivative’s gain or loss wereincluded in the assessment of hedge effectiveness. For the years ended December 31, 2018 , 2017 and 2016 , the component of the change in estimated fair value ofderivatives that was excluded from the assessment of hedge effectiveness was ($58) million , ($40) million and ($23) million , respectively.

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives (continued)

CashFlowHedges

The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rateswaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposureof foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases ofinvestments; (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed rate investments; and (v) interest rate swaps and interestrate forwards to hedge forecasted fixed rate borrowings.

In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Becausecertain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified amounts from AOCIinto net derivative gains (losses). These amounts were $5 million , $13 million and $12 million for the years ended December 31, 2018 , 2017 and 2016 ,respectively.

At December 31, 2018 and 2017 , the maximum length of time over which the Company was hedging its exposure to variability in future cash flows forforecasted transactions did not exceed four years and five years, respectively.

At December 31, 2018 and 2017 , the balance in AOCI associated with cash flow hedges was $2.1 billion and $1.5 billion , respectively. Upon the Separation,the Company recorded a reduction of $414 million of deferred gains within AOCI.

For the years ended December 31 , 2017 and 2016 , the amounts of deferred gains (losses) in AOCI related to Brighthouse derivatives were ($92) million and$71 million , respectively. For the years ended December 31, 2017 and 2016 , the amounts of income reclassified from AOCI into income (loss) from discontinuedoperations were $16 million and $45 million , respectively.

The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and the consolidatedstatements of equity. The table excludes the effects of Brighthouse derivatives prior to the Separation.

Derivatives in Cash Flow Hedging Relationships

Amount of Gains (Losses)Deferred in AOCI on Derivatives

Amount and Location of Gains (Losses) Reclassified from

AOCI into Income (Loss)

Amount and Location of Gains (Losses)

Recognized in Income (Loss) on Derivatives

(Effective Portion) (Effective Portion) (Ineffective Portion)

Net Derivative Gains (Losses) Net Investment

Income Other Expenses Net Derivative

Gains (Losses)

(In millions)

Year Ended December 31, 2018 Interest rate swaps $ (143) $ 23 $ 18 $ — $ 3Interest rate forwards (114) (2) 2 1 —Foreign currency swaps 414 (558) (5) 2 8Credit forwards — 1 1 — —

Total $ 157 $ (536) $ 16 $ 3 $ 11

Year Ended December 31, 2017 Interest rate swaps $ 78 $ 24 $ 16 $ — $ 18Interest rate forwards 210 (11) 2 1 (2)Foreign currency swaps (335) 974 — 2 (4)Credit forwards — 1 — — —

Total $ (47) $ 988 $ 18 $ 3 $ 12

Year Ended December 31, 2016 Interest rate swaps $ 50 $ 56 $ 12 $ — $ (1)Interest rate forwards (366) (1) 4 1 —Foreign currency swaps 589 (350) (2) 2 1Credit forwards — 3 1 — —

Total $ 273 $ (292) $ 15 $ 3 $ —

All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives (continued)

At December 31, 2018 , the Company expected to reclassify ($63) million of deferred net gains (losses) on derivatives in AOCI, included in the table above, toearnings within the next 12 months.

HedgesofNetInvestmentsinForeignOperations

The Company uses foreign currency exchange rate derivatives, which may include foreign currency forwards and currency options, to hedge portions of its netinvestments in foreign operations against adverse movements in exchange rates. The Company measures ineffectiveness on these derivatives based upon thechange in forward rates.

When net investments in foreign operations are sold or substantially liquidated, the amounts in AOCI are reclassified to the statement of operations.

The following table presents the effects of derivatives in net investment hedging relationships on the consolidated statements of operations and theconsolidated statements of equity:

Derivatives in Net Investment Hedging Relationships (1)

Amount of Gains (Losses) Deferred in AOCI Years Ended December 31,

2018 2017 2016

(In millions)Foreign currency forwards $ 35 $ (155) $ (267)Currency options (160) (290) (35)

Total $ (125) $ (445) $ (302)__________________

(1) There was no ineffectiveness recognized for the Company’s hedges of net investments in foreign operations. All components of each derivative’s gain orloss were included in the assessment of hedge effectiveness.

At December 31, 2018 and 2017 , the cumulative foreign currency translation gain (loss) recorded in AOCI related to hedges of net investments in foreignoperations was $184 million and $309 million , respectively.

CreditDerivatives

In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insurecredit risk. Such credit derivatives are included within the nonqualifying derivatives and derivatives for purposes other than hedging table. If a credit event occurs,as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amountin exchange for the delivery of par quantities of the referenced credit obligation. The Company’s maximum amount at risk, assuming the value of all referencedcredit obligations is zero, was $11.4 billion at both December 31, 2018 and 2017 . The Company can terminate these contracts at any time through cash settlementwith the counterparty at an amount equal to the then current estimated fair value of the credit default swaps. At December 31, 2018 and 2017 , the Company wouldhave received $82 million and $271 million , respectively, to terminate all of these contracts.

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives (continued)

The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit defaultswaps at:

December 31,

2018 2017

Rating Agency Designation of ReferencedCredit Obligations (1)

EstimatedFair Valueof CreditDefaultSwaps

Maximum Amount of

Future Payments under Credit Default

Swaps

Weighted Average Years to

Maturity (2)

EstimatedFair Valueof CreditDefaultSwaps

Maximum Amount of

Future Payments under Credit Default

Swaps

Weighted Average Years to

Maturity (2)

(Dollars in millions)Aaa/Aa/A Single name credit default swaps (3) $ 4 $ 354 1.7 $ 7 $ 375 2.6Credit default swaps referencing indices 28 2,154 2.5 44 2,268 2.7

Subtotal 32 2,508 2.4 51 2,643 2.7Baa Single name credit default swaps (3) 3 482 1.5 7 605 1.8Credit default swaps referencing indices 40 8,056 5.0 183 7,662 5.0

Subtotal 43 8,538 4.8 190 8,267 4.8Ba Single name credit default swaps (3) — 15 2.0 1 115 3.4Credit default swaps referencing indices — — — — — —

Subtotal — 15 2.0 1 115 3.4B Single name credit default swaps (3) — — — 2 20 3.5Credit default swaps referencing indices 7 330 5.0 27 330 5.0

Subtotal 7 330 5.0 29 350 4.9Total $ 82 $ 11,391 4.3 $ 271 $ 11,375 4.3

__________________

(1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), S&Pand Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used.

(2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts.

(3) Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or state and political subdivisions.

The Company has also entered into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. As aresult, the maximum amounts of potential future recoveries available to offset the $11.4 billion of future payments under credit default provisions at bothDecember 31, 2018 and 2017 set forth in the table above were $16 million and $27 million at December 31, 2018 and 2017 , respectively.

CreditRiskonFreestandingDerivatives

The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current creditexposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration theexistence of master netting or similar agreements and any collateral received pursuant to such agreements.

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives (continued)

The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoringexposure limits. The Company’s OTC-bilateral derivative transactions are governed by ISDA Master Agreements which provide for legally enforceable set-off andclose-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default andbankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterpartyarising out of all included transactions. Substantially all of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which requireboth the pledging and accepting of collateral in connection with its OTC-bilateral derivatives.

The Company’s OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected throughregulated exchanges. Such positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimalexposure to credit-related losses in the event of nonperformance by counterparties to such derivatives.

See Note 10 for a description of the impact of credit risk on the valuation of derivatives.

The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateralwere as follows at:

December 31,

2018 2017

Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities

(In millions)Gross estimated fair value of derivatives: OTC-bilateral (1) $ 8,805 $ 3,758 $ 7,955 $ 4,059OTC-cleared (1), (6) 245 33 649 223Exchange-traded 18 80 22 8

Total gross estimated fair value of derivatives (1) 9,068 3,871 8,626 4,290Amounts offset on the consolidated balance sheets — — — —

Estimated fair value of derivatives presented on the consolidated balance sheets (1), (6) 9,068 3,871 8,626 4,290Gross amounts not offset on the consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (2,570) (2,570) (2,528) (2,528)OTC-cleared (25) (25) (35) (35)Exchange-traded (1) (1) (1) (1)Cash collateral: (3), (4) OTC-bilateral (4,709) — (4,169) —OTC-cleared (145) — (584) (179)Exchange-traded — (57) — (5)Securities collateral: (5) OTC-bilateral (1,266) (1,134) (1,004) (1,474)OTC-cleared — (8) — (9)Exchange-traded — (7) — (2)

Net amount after application of master netting agreements and collateral $ 352 $ 69 $ 305 $ 57__________________

(1) At December 31, 2018 and 2017 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $99 million and $ 75 million , respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in otherliabilities of ($59) million and ($49) million , respectively.

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives (continued)

(2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals.

(3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments orin fixed maturity securities AFS, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on thebalance sheet.

(4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives andis included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the netestimated fair value of derivatives after application of netting agreements. At December 31, 2018 and 2017 , the Company received excess cash collateral of$135 million and $253 million , respectively, and provided excess cash collateral of $226 million and $272 million , respectively, which is not included inthe table above due to the foregoing limitation.

(5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints,the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2018 , none of the collateral had been sold or re-pledged.Securities collateral pledged by the Company is reported in fixed maturity securities AFS on the balance sheet. Subject to certain constraints, thecounterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the netestimated fair value of derivatives after application of netting agreements and cash collateral. At December 31, 2018 and 2017 , the Company receivedexcess securities collateral with an estimated fair value of $70 million and $108 million , respectively, for its OTC-bilateral derivatives, which are notincluded in the table above due to the foregoing limitation. At December 31, 2018 and 2017 , the Company provided excess securities collateral with anestimated fair value of $212 million and $305 million , respectively, for its OTC-bilateral derivatives, $601 million and $522 million , respectively, for itsOTC-cleared derivatives, and $90 million and $89 million , respectively, for its exchange-traded derivatives, which are not included in the table above dueto the foregoing limitation.

(6) Effective January 16, 2018, the LCH amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposedto adjustments to collateral. Effective January 3, 2017, the CME amended its rulebook, resulting in the characterization of variation margin transfers assettlement payments, as opposed to adjustments to collateral. See Note 1 for further information on the LCH and CME amendments.

The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering theeffect of netting agreements, to pledge collateral when the collateral amount owed by that counterparty reaches a minimum transfer amount. A small number ofthese arrangements also include credit-contingent provisions that include a threshold above which collateral must be posted. Such agreements provide for areduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the credit ratings of MetLife, Inc. and/or thecounterparty. In addition, substantially all of the Company’s netting agreements for derivatives contain provisions that require both the Company and thecounterparty to maintain a specific investment grade credit rating from each of Moody’s and S&P. If a party’s credit or financial strength rating, as applicable, wereto fall below that specific investment grade credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminatethe transactions and demand immediate settlement and payment based on such party’s reasonable valuation of the derivatives.

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives (continued)

The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that were in a net liability position after considering theeffect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. The table also presents the incrementalcollateral that MetLife, Inc. would be required to provide if there was a one-notch downgrade in MetLife, Inc.’s senior unsecured debt rating at the reporting dateor if the Company’s credit or financial strength rating, as applicable, at the reporting date sustained a downgrade to a level that triggered full overnightcollateralization or termination of the derivative position. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table.

December 31,

2018 2017

DerivativesSubject to Credit-

ContingentProvisions

Derivatives NotSubject to Credit-

ContingentProvisions Total

DerivativesSubject to Credit-

ContingentProvisions

Derivatives NotSubject to Credit-

ContingentProvisions Total

(In millions)Estimated Fair Value of Derivatives in a Net Liability

Position (1) $ 1,148 $ 40 $ 1,188 $ 1,508 $ 24 $ 1,532

Estimated Fair Value of Collateral Provided: Fixed maturity securities AFS $ 1,218 $ 9 $ 1,227 $ 1,675 $ 26 $ 1,701

Cash $ 6 $ — $ 6 $ — $ — $ —Estimated Fair Value of Incremental Collateral Provided

Upon: One-notch downgrade in the Company’s credit or financial

strength rating, as applicable $ 10 $ — $ 10 $ 15 $ — $ 15Downgrade in the Company’s credit or financial strength

rating, as applicable, to a level that triggers full overnightcollateralization or termination of the derivative position $ 10 $ — $ 10 $ 20 $ — $ 20

__________________

(1) After taking into consideration the existence of netting agreements.

EmbeddedDerivatives

The Company issues certain products or purchases certain investments that contain embedded derivatives that are required to be separated from their hostcontracts and accounted for as freestanding derivatives. These host contracts principally include: variable annuities with guaranteed minimum benefits, includingGMWBs, GMABs and certain GMIBs; ceded reinsurance of guaranteed minimum benefits related to certain GMIBs; assumed reinsurance of guaranteed minimumbenefits related to GMWBs and GMABs; funding agreements with equity or bond indexed crediting rates; funds withheld on ceded reinsurance; fixed annuitieswith equity-indexed returns; and certain debt and equity securities.

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Notes to the Consolidated Financial Statements — (continued)

9. Derivatives (continued)

The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from theirhost contracts at:

December 31,

Balance Sheet Location 2018 2017

(In millions)Embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits Premiums, reinsurance and other receivables $ 71 $ 144Options embedded in debt or equity securities (1) Investments — (132)

Embedded derivatives within asset host contracts $ 71 $ 12

Embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances $ 298 $ 32Assumed guaranteed minimum benefits Policyholder account balances 495 291Funds withheld on ceded reinsurance Other liabilities (41) 25Fixed annuities with equity indexed returns Policyholder account balances 58 70

Embedded derivatives within liability host contracts $ 810 $ 418

__________________

(1) Effective January 1, 2018, in connection with the adoption of new guidance related to the recognition and measurement of financial instruments, theCompany was no longer required to bifurcate and account separately for derivatives embedded in equity securities (see Note 1 ). Beginning January 1, 2018,the change in fair value of equity securities was recognized as a component of net investment gains and losses.

The following table presents changes in estimated fair value related to embedded derivatives:

Years Ended December 31,

2018 2017 2016 (In millions)Net derivative gains (losses) (1) $ (150) $ 799 $ (181)__________________

(1) The valuation of guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) inconnection with this adjustment were $133 million , ($190) million and $156 million for the years ended December 31, 2018 , 2017 and 2016 , respectively.

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value

When developing estimated fair values, the Company considers three broad valuation approaches: (i) the market approach, (ii) the income approach, and(iii) the cost approach. The Company determines the most appropriate valuation approach to use, given what is being measured and the availability of sufficientinputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, basedon the significant input with the lowest level in its valuation. The input levels are as follows:

Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume forequity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities AFS.

Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similarassets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or canbe derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets orliabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing theasset or liability.

Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. TheCompany’s ability to sell securities, as well as the price ultimately realized for these securities, depends upon the demand and liquidity in the market and increasesthe use of judgment in determining the estimated fair value of certain securities.

Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuationmethodologies may have a material effect on the estimated fair value amounts.

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

RecurringFairValueMeasurements

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including thoseitems for which the Company has elected the FVO, are presented below at:

December 31, 2018

Fair Value Hierarchy

Level 1 Level 2 Level 3 Total

Estimated Fair Value

(In millions)

Assets Fixed maturity securities AFS: U.S. corporate $ — $ 74,874 $ 4,074 $ 78,948Foreign government — 62,150 138 62,288Foreign corporate — 50,310 6,393 56,703U.S. government and agency 19,656 19,666 — 39,322RMBS — 24,734 3,227 27,961ABS — 11,775 697 12,472Municipals — 11,533 — 11,533CMBS — 8,696 342 9,038

Total fixed maturity securities AFS 19,656 263,738 14,871 298,265Equity securities 916 105 419 1,440Unit-linked and FVO Securities (1) 10,216 1,995 405 12,616Short-term investments (2) 1,470 1,746 33 3,249Residential mortgage loans — FVO — — 299 299Other investments 80 118 39 237Derivative assets: (3) Interest rate 1 4,809 33 4,843Foreign currency exchange rate 4 2,922 52 2,978Credit — 91 29 120Equity market 13 956 59 1,028

Total derivative assets 18 8,778 173 8,969Embedded derivatives within asset host contracts (4) — — 71 71Separate account assets (5) 79,726 94,886 944 175,556

Total assets (6) $ 112,082 $ 371,366 $ 17,254 $ 500,702Liabilities Derivative liabilities: (3) Interest rate $ 3 $ 194 $ 218 $ 415Foreign currency exchange rate — 2,660 89 2,749Credit — 48 4 52Equity market 77 550 87 714

Total derivative liabilities 80 3,452 398 3,930Embedded derivatives within liability host contracts (4) — — 810 810Separate account liabilities (5) 1 20 7 28

Total liabilities $ 81 $ 3,472 $ 1,215 $ 4,768

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

December 31, 2017

Fair Value Hierarchy

Level 1 Level 2 Level 3 Total

EstimatedFair Value

(In millions)

Assets Fixed maturity securities AFS: U.S. corporate $ — $ 78,171 $ 4,490 $ 82,661Foreign government — 61,325 209 61,534Foreign corporate — 48,840 6,729 55,569U.S. government and agency 26,052 21,342 — 47,394RMBS — 25,339 3,461 28,800ABS — 11,204 1,087 12,291Municipals — 12,455 — 12,455CMBS — 7,934 293 8,227

Total fixed maturity securities AFS 26,052 266,610 16,269 308,931Equity securities 1,104 981 428 2,513Unit-linked and FVO Securities (1) 14,028 2,355 362 16,745Short-term investments (2) 3,001 1,252 33 4,286Residential mortgage loans — FVO — — 520 520Other investments 81 84 — 165Derivative assets: (3) Interest rate 2 5,553 8 5,563Foreign currency exchange rate 2 1,954 113 2,069Credit — 240 38 278Equity market 18 548 75 641

Total derivative assets 22 8,295 234 8,551Embedded derivatives within asset host contracts (4) — — 144 144Separate account assets (5) 89,916 114,124 961 205,001

Total assets $ 134,204 $ 393,701 $ 18,951 $ 546,856Liabilities Derivative liabilities: (3) Interest rate $ 4 $ 638 $ 130 $ 772Foreign currency exchange rate — 2,553 37 2,590Credit — 43 — 43Equity market 4 731 199 934

Total derivative liabilities 8 3,965 366 4,339Embedded derivatives within liability host contracts (4) — — 418 418Separate account liabilities (5) — 7 2 9

Total liabilities $ 8 $ 3,972 $ 786 $ 4,766__________________

(1) Unit-linked and FVO Securities were primarily comprised of Unit-linked investments at both December 31, 2018 and 2017 .

(2) Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-terminvestments are not measured at estimated fair value on a recurring basis.

(3) Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilitieson the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets, but arepresented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables.

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

(4) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on theconsolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities onthe consolidated balance sheets. At December 31, 2018 and 2017 , debt and equity securities also included embedded derivatives of $0 and ($132) million ,respectively.

(5) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflectedwithin separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilitiespresented in the tables above represent derivative liabilities.

(6) In connection with the adoption of new guidance related to the recognition and measurement of financial instruments (see Note 1 ), other limited partnershipinterests are measured at estimated fair value on a recurring basis, effective January 1, 2018. This represents the former cost method investments held as ofJanuary 1, 2018 that were measured at estimated fair value on a recurring basis upon adoption of this guidance. Total assets included in the fair valuehierarchy exclude these other limited partnership interests that are measured at estimated fair value using the net asset value (“NAV”) per share (or itsequivalent) practical expedient. At December 31, 2018 , the estimated fair value of such investments was $145 million .

The following describes the valuation methodologies used to measure assets and liabilities at fair value.

Investments

Securities, Short-term Investments and Other Investments

When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularlyobtainable. Generally, these are the most liquid of the Company’s securities holdings and valuation of these securities does not involve management’sjudgment.

When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies,giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levelsof price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Whenobservable inputs are not available, the market standard valuation methodologies rely on inputs that are significant to the estimated fair value that are notobservable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based in largepart on management’s judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable,management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given thecircumstances.

The estimated fair value of other investments is determined on a basis consistent with the methodologies described herein for securities.

The valuation approaches and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchyare presented below. The valuation of most instruments listed below is determined using independent pricing sources, matrix pricing, discounted cash flowmethodologies or other similar techniques that use either observable market inputs or unobservable inputs.

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

Instrument Level 2Observable Inputs

Level 3Unobservable Inputs

Fixed maturity securities AFS

U.S. corporate and Foreign corporate securities

Valuation Approaches: Principally the market and income approaches. Valuation Approaches: Principally the market approach.

Key Inputs: Key Inputs:

• quoted prices in markets that are not active • illiquidity premium

• benchmark yields; spreads off benchmark yields; new issuances; issuer rating • delta spread adjustments to reflect specific credit-related issues

• trades of identical or comparable securities; duration • credit spreads

• Privately-placed securities are valued using the additional key inputs: • quoted prices in markets that are not active for identical or similar securities that are less liquid andbased on lower levels of trading activity than securities classified in Level 2

• market yield curve; call provisions

• observable prices and spreads for similar public or private securities that incorporate the creditquality and industry sector of the issuer

• independent non-binding broker quotations

• delta spread adjustments to reflect specific credit-related issues Foreign government securities, U.S. government and agency securities and Municipals

Valuation Approaches: Principally the market approach. Valuation Approaches: Principally the market approach.

Key Inputs: Key Inputs:

• quoted prices in markets that are not active • independent non-binding broker quotations

• benchmark U.S. Treasury yield or other yields • quoted prices in markets that are not active for identical or similar securities that are less liquid andbased on lower levels of trading activity than securities classified in Level 2

• the spread off the U.S. Treasury yield curve for the identical security • issuer ratings and issuer spreads; broker-dealer quotes • credit spreads

• comparable securities that are actively traded Structured Securities

Valuation Approaches: Principally the market and income approaches. Valuation Approaches: Principally the market and income approaches.

Key Inputs: Key Inputs:

• quoted prices in markets that are not active•

credit spreads

• spreads for actively traded securities; spreads off benchmark yields • quoted prices in markets that are not active for identical or similar securities that are less liquid andbased on lower levels of trading activity than securities classified in Level 2

• expected prepayment speeds and volumes • current and forecasted loss severity; ratings; geographic region • independent non-binding broker quotations

• weighted average coupon and weighted average maturity • average delinquency rates; debt-service coverage ratios • issuance-specific information, including, but not limited to: • collateral type; structure of the security; vintage of the loans • payment terms of the underlying assets • payment priority within the tranche; deal performance

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

InstrumentLevel 2

Observable InputsLevel 3

Unobservable Inputs

Equity securities

Valuation Approaches: Principally the market approach. Valuation Approaches: Principally the market and income approaches.

Key Input: Key Inputs:

• quoted prices in markets that are not considered active • credit ratings; issuance structures

• quoted prices in markets that are not active for identical or similar securities that are less liquidand based on lower levels of trading activity than securities classified in Level 2

• independent non-binding broker quotations

Unit-linked and FVO Securities, Short-term investments and Other investments

• Unit-linked and FVO Securities include mutual fund interests without readily determinable fair valuesgiven prices are not published publicly. Valuation of these mutual funds is based upon quoted pricesor reported NAV provided by the fund managers, which were based on observable inputs.

• Unit-linked and FVO Securities, short-term investments and other investments are of a similarnature and class to the fixed maturity securities AFS and equity securities described above;accordingly, the valuation approaches and unobservable inputs used in their valuation are alsosimilar to those described above.

• Short-term investments and other investments are of a similar nature and class to the fixed maturity

securities AFS and equity securities described above; accordingly, the valuation approaches andobservable inputs used in their valuation are also similar to those described above.

Residential mortgage loans — FVO

• N/A Valuation Approaches: Principally the market approach.

Valuation Techniques and Key Inputs: These investments are based primarily on matrix pricing or

other similar techniques that utilize inputs from mortgage servicers that are unobservable orcannot be derived principally from, or corroborated by, observable market data.

Separate account assets and Separate account liabilities (1)

Mutual funds and hedge funds without readily determinable fair values as prices are not published publicly

Key Input: • N/A

• quoted prices or reported NAV provided by the fund managers Other limited partnership interests

• N/A • Valued giving consideration to the underlying holdings of the partnerships and adjusting, ifappropriate.

Key Inputs:

• liquidity; bid/ask spreads; performance record of the fund manager

• other relevant variables that may impact the exit value of the particular partnership interest

__________________

(1) Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities, equitysecurities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities,equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities,Short-term Investments and Other Investments,” and “— Derivatives — Freestanding Derivatives.”

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

Derivatives

The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricingmodels for OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based onmarket standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing suchinstruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk,nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models.

The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can bederived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significantto the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Theseunobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemedappropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments.

Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they aredeemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect onthe estimated fair values of the Company’s derivatives and could materially affect net income.

The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-clearedderivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements andcollateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent withsimilar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficientcollateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricinglevels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation ofthe requirement to make additional credit risk adjustments is performed by the Company each reporting period.

Freestanding Derivatives

Level 2 Valuation Approaches and Key Inputs:

This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 andthose derivatives with unobservable inputs as described in Level 3.

Level 3 Valuation Approaches and Key Inputs:

These valuation methodologies generally use the same inputs as described in the corresponding sections for Level 2 measurements of derivatives.However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot bederived principally from, or corroborated by, observable market data.

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques,whereas valuations of option-based derivatives utilize option pricing models. Key inputs are as follows:

Instrument Interest Rate Foreign CurrencyExchange Rate Credit Equity Market

Inputs common to Level 2 andLevel 3 by instrument type

• swap yield curves • swap yield curves • swap yield curves • swap yield curves• basis curves • basis curves • credit curves • spot equity index levels• interest rate volatility (1) • currency spot rates • recovery rates • dividend yield curves

• cross currency basis curves • equity volatility (1)

• currency volatility (1) Level 3 • swap yield curves (2) • swap yield curves (2) • swap yield curves (2) • dividend yield curves (2) • basis curves (2) • basis curves (2) • credit curves (2) • equity volatility (1), (2)

• repurchase rates • cross currency basis curves (2) • credit spreads • correlation between model

inputs (1) • currency correlation • repurchase rates

• currency volatility (1) • independent non-binding broker

quotations __________________

(1) Option-based only.

(2) Extrapolation beyond the observable limits of the curve(s).

EmbeddedDerivatives

Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, equity or bond indexed crediting rates withincertain funding agreements and annuity contracts, and those related to funds withheld on ceded reinsurance agreements. Embedded derivatives are recorded atestimated fair value with changes in estimated fair value reported in net income.

The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embeddedderivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in netderivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

The Company calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the presentvalue of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is basedon in-force business, projecting future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates.

Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent thatprices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities andhistorical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based onactuarial studies of historical experience.

The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs.The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market forMetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities andthe claims paying ability of the issuing insurance subsidiaries as compared to MetLife, Inc.

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participantwould require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal andsurrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capitalneeded to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but notlimited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations inactuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations inthe estimated fair value of the guarantees that could materially affect net income.

The Company ceded the risk associated with certain of the GMIBs previously described. These reinsurance agreements contain embedded derivatives whichare included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in netderivative gains (losses) or policyholder benefits and claims depending on the statement of operations classification of the direct risk. The value of the embeddedderivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Companywith the exception of the input for nonperformance risk that reflects the credit of the reinsurer.

The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change inestimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of theunderlying assets is determined as described in “— Investments — Securities, Short-term Investments and Other Investments.” The estimated fair value of theseembedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated balance sheets with changes in estimated fairvalue recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significantfluctuations in the estimated fair value of these embedded derivatives that could materially affect net income.

The estimated fair value of the embedded equity and bond indexed derivatives contained in certain funding agreements is determined using market standardswap valuation models and observable market inputs, including a nonperformance risk adjustment. The estimated fair value of these embedded derivatives areincluded, along with their funding agreements host, within policyholder account balances with changes in estimated fair value recorded in net derivative gains(losses). Changes in equity and bond indices, interest rates and the Company’s credit standing may result in significant fluctuations in the estimated fair value ofthese embedded derivatives that could materially affect net income.

The Company issues certain annuity contracts which allow the policyholder to participate in returns from equity indices. These equity indexed features areembedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract, with changes in estimated fair value reported innet derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets.

The estimated fair value of the embedded equity indexed derivatives, based on the present value of future equity returns to the policyholder using actuarialand present value assumptions including expectations concerning policyholder behavior, is calculated by the Company’s actuarial department. The calculation isbased on in-force business and uses standard capital market techniques, such as Black-Scholes, to calculate the value of the portion of the embedded derivativefor which the terms are set. The portion of the embedded derivative covering the period beyond where terms are set is calculated as the present value of amountsexpected to be spent to provide equity indexed returns in those periods. The valuation of these embedded derivatives also includes the establishment of a riskmargin, as well as changes in nonperformance risk.

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

Embedded Derivatives Within Asset and Liability Host Contracts

Level 3 Valuation Approaches and Key Inputs:

Direct and assumed guaranteed minimum benefits

These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilizesignificant inputs that may include swap yield curves, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by,observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curves andimplied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality,nonperformance risk and cost of capital for purposes of calculating the risk margin.

Reinsurance ceded on certain guaranteed minimum benefits

These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standardunobservable inputs used in their valuation are similar to those described above in “— Direct and assumed guaranteed minimum benefits” and alsoinclude counterparty credit spreads.

TransfersbetweenLevels

Overall, transfers between levels occur when there are changes in the observability of inputs and market activity.

Transfers into or out of Level 3:

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when marketactivity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances inquoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input canbe corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s)becoming observable.

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

AssetsandLiabilitiesMeasuredatFairValueUsingSignificantUnobservableInputs(Level3)

The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and thesensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basisusing significant unobservable inputs (Level 3) at:

December 31, 2018 December 31, 2017 Impact of Increase in Input

on Estimated Fair Value (2) Valuation Techniques Significant

Unobservable Inputs Range Weighted Average (1) Range Weighted

Average (1) Fixed maturity securities AFS (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 85 - 134 104 83 - 142 110 Increase

• Market pricing • Quoted prices (4) 25 - 638 110 10 - 443 121 Increase

• Consensus pricing • Offered quotes (4) 100 - 110 102 97 - 104 101 Increase

RMBS • Market pricing • Quoted prices (4) — - 106 94 — - 126 94 Increase (5)

ABS • Market pricing • Quoted prices (4) 3 - 116 97 5 - 117 100 Increase (5)

• Consensus pricing • Offered quotes (4) 100 - 103 101 100 - 103 100 Increase (5)

Derivatives Interest rate • Present value techniques • Swap yield (6) 268 - 317 200 - 300 Increase (7)

• Repurchase rates (8) (5) - 6 (5) - 5 Decrease (7)

Foreign currency exchange rate • Present value techniques • Swap yield (6) (20) - 328 (14) - 309 Increase (7)

Credit • Present value techniques • Credit spreads (9) 97 - 103 — - — Decrease (7)

• Consensus pricing • Offered quotes (10) Equity market • Present value techniques

or option pricingmodels

• Volatility (11)

21% - 26%

11% - 31%

Increase (7)

• Correlation (12) 10% - 30% 10% - 30% Embedded derivatives Direct, assumed and ceded

guaranteed minimum benefits• Option pricing techniques • Mortality rates:

Ages 0 - 40 0% - 0.18% 0% - 0.21% Decrease (13)

Ages 41 - 60 0.03% - 0.80% 0.03% - 0.75% Decrease (13)

Ages 61 - 115 0.12% - 100% 0.15% - 100% Decrease (13)

• Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (14)

Durations 11 - 20 2% - 100% 2% - 100% Decrease (14)

Durations 21 - 116 1.25% - 100% 1.25% - 100% Decrease (14)

• Utilization rates 0% - 25% 0% - 25% Increase (15)

• Withdrawal rates 0% - 20% 0% - 20% (16)

• Long-term equity volatilities 7.16% - 30% 8.25% - 33% Increase (17)

• Nonperformance risk spread 0.04% - 1.77% 0.02% - 1.32% Decrease (18)

__________________

(1) The weighted average for fixed maturity securities AFS is determined based on the estimated fair value of the securities.

(2) The impact of a decrease in input would have resulted in the opposite impact on estimated fair value. For embedded derivatives, changes to direct andassumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions.

(3) Significant increases (decreases) in expected default rates in isolation would have resulted in substantially lower (higher) valuations.

(4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities AFS of dollars per hundred dollars of par.

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10. Fair Value (continued)

(5) Changes in the assumptions used for the probability of default would have been accompanied by a directionally similar change in the assumption used forthe loss severity and a directionally opposite change in the assumptions used for prepayment rates.

(6) Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types ofderivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across ayield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(7) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.

(8) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points.

(9) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs areprimarily comprised of written credit default swaps.

(10) At both December 31, 2018 and 2017 , independent non-binding broker quotations were used in the determination of less than 1% of the total net derivativeestimated fair value.

(11) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiplevolatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(12) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is morerepresentative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of thechange in valuations.

(13) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortalityimprovement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposesof valuing the embedded derivative.

(14) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder accountvalue, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteedamount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periodswhen a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuingthe embedded derivative.

(15) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefitupon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, thecontract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flowsare projected for purposes of valuing the embedded derivative.

(16) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. Thewithdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawalrates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease)in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) inwithdrawal rates results in a decrease (increase) in the estimated fair value.

(17) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract,long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(18) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on theduration of the cash flow being discounted for purposes of valuing the embedded derivative.

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement of assets and liabilitiesclassified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3, including those withinseparate account assets, and embedded derivatives within funds withheld related to certain ceded reinsurance, use the same valuation techniques and significantunobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quotedprices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well asindependent non-binding broker quotations. The residential mortgage loans — FVO are valued using independent non-binding broker quotations and internalmodels including matrix pricing and discounted cash flow methodologies using current interest rates. The sensitivity of the estimated fair value to changes in thesignificant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table. The valuation techniques andsignificant unobservable inputs used in the fair value measurement for the more significant assets measured at estimated fair value on a nonrecurring basis anddetermined using significant unobservable inputs (Level 3) are summarized in “— Nonrecurring Fair Value Measurements.”

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservableinputs (Level 3):

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Fixed Maturity Securities AFS

Corporate (1) Foreign Government Structured

Securities Municipals Equity Securities Unit-linked and FVO

Securities

(In millions)

Balance, January 1, 2017 $ 11,537 $ 289 $ 5,215 $ 10 $ 468 $ 287Total realized/unrealized gains (losses) included in net

income (loss) (2) (3) 3 4 94 — — 22

Total realized/unrealized gains (losses) included in AOCI 708 — 133 — 19 —

Purchases (4) 3,830 30 1,376 — 25 292

Sales (4) (1,763) (53) (1,598) — (51) (141)

Issuances (4) — — — — — —

Settlements (4) — — — — — —

Transfers into Level 3 (5) 72 5 70 — 1 8

Transfers out of Level 3 (5) (3,168) (66) (449) (10) (34) (106)

Balance, December 31, 2017 11,219 209 4,841 — 428 362Total realized/unrealized gains (losses) included in net

income (loss) (2) (3) 9 3 82 — (36) 6

Total realized/unrealized gains (losses) included in AOCI (745) (14) (23) — — —

Purchases (4) 1,903 5 1,142 — 13 263

Sales (4) (1,464) (47) (946) — (28) (176)

Issuances (4) — — — — — —

Settlements (4) — — — — — —

Transfers into Level 3 (5) 152 — 59 — 52 9

Transfers out of Level 3 (5) (607) (18) (889) — (10) (59)

Balance, December 31, 2018 $ 10,467 $ 138 $ 4,266 $ — $ 419 $ 405Changes in unrealized gains (losses) included in net income (loss)

for the instruments still held at December 31, 2016: (6) $ 6 $ 12 $ 103 $ 1 $ (29) $ 3Changes in unrealized gains (losses) included in net income (loss)

for the instruments still held at December 31, 2017: (6) $ 1 $ 4 $ 84 $ — $ (17) $ 19Changes in unrealized gains (losses) included in net income (loss)

for the instruments still held at December 31, 2018: (6) $ 1 $ 1 $ 70 $ — $ (26) $ 8

Gains (Losses) Data for the year ended December 31, 2016: Total realized/unrealized gains (losses) included in net

income (loss) (2) (3) $ 5 $ 12 $ 103 $ 1 $ (24) $ 2

Total realized/unrealized gains (losses) included in AOCI $ 59 $ (42) $ 56 $ 2 $ 19 $ —

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Short-termInvestments

ResidentialMortgage

Loans - FVO Other Investments NetDerivatives (7) Net Embedded

Derivatives (8) SeparateAccounts

(9)

(In millions)

Balance, January 1, 2017 $ 46 $ 566 $ — $ (562) $ (729) $ 1,141Total realized/unrealized gains (losses) included in net

income (loss) (2) (3) — 40 — 87 823 (8)

Total realized/unrealized gains (losses) included in AOCI — — — 216 (46) —

Purchases (4) 32 175 — — — 187

Sales (4) (1) (179) — — — (80)

Issuances (4) — — — (7) — 1

Settlements (4) — (82) — 134 (322) (93)

Transfers into Level 3 (5) — — — — — 35

Transfers out of Level 3 (5) (44) — — — — (224)

Balance, December 31, 2017 33 520 — (132) (274) 959Total realized/unrealized gains (losses) included in net

income (loss) (2) (3) (1) 7 — (161) (150) 7

Total realized/unrealized gains (losses) included in AOCI (1) — — (140) (15) —

Purchases (4) 34 — 39 5 — 198

Sales (4) (12) (162) — — — (168)

Issuances (4) — — — (1) — (3)

Settlements (4) — (66) — 204 (300) (1)

Transfers into Level 3 (5) — — — — — 53

Transfers out of Level 3 (5) (20) — — — — (108)

Balance, December 31, 2018 $ 33 $ 299 $ 39 $ (225) $ (739) $ 937Changes in unrealized gains (losses) included in net income (loss) for the

instruments still held at December 31, 2016: (6) $ 1 $ 8 $ — $ (56) $ (242) $ —Changes in unrealized gains (losses) included in net income (loss) for the

instruments still held at December 31, 2017: (6) $ — $ 27 $ — $ 53 $ 793 $ —Changes in unrealized gains (losses) included in net income (loss) for the

instruments still held at December 31, 2018: (6) $ (1) $ (15) $ — $ (59) $ (150) $ —

Gains (Losses) Data for the year ended December 31, 2016: Total realized/unrealized gains (losses) included in net

income (loss) (2) (3) $ 1 $ 8 $ — $ (31) $ (214) $ (2)

Total realized/unrealized gains (losses) included in AOCI $ 4 $ — $ — $ (367) $ (20) $ —__________________

(1) Comprised of U.S. and foreign corporate securities.

(2) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities areincluded in net investment gains (losses), while changes in estimated fair value of residential mortgage loans — FVO are included in net investment income.Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included innet income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(3) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(4) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included insettlements.

(5) Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.

(6) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantiallyall changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains(losses).

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10. Fair Value (continued)

(7) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.

(8) Embedded derivative assets and liabilities are presented net for purposes of the rollforward.

(9) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate accountliabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes arepresented within net investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward.

FairValueOption

The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. The following table presents information forresidential mortgage loans, which are accounted for under the FVO and were initially measured at fair value.

December 31,

2018 2017 (In millions)Unpaid principal balance $ 344 $ 650Difference between estimated fair value and unpaid principal balance (45) (130)

Carrying value at estimated fair value $ 299 $ 520

Loans in nonaccrual status $ 89 $ 198

Loans more than 90 days past due $ 41 $ 94

Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fairvalue and unpaid principal balance $ (36) $ (102)

NonrecurringFairValueMeasurements

The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reportingdates (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservableinputs (Level 3).

At December 31, Years Ended December 31,

2018 2017 2016 2018 2017 2016 Carrying Value After Measurement Gains (Losses) (In millions)Other limited partnership interests (1) N/A (2) $ 58 $ 96 N/A (2) $ (65) $ (64)Other assets (3) $ — $ — $ — $ — $ 10 $ (30)__________________

(1) Estimated fair value is determined from information provided on the financial statements of the underlying entities including NAV data. These investmentsinclude private equity and debt funds that typically invest primarily in various strategies including leveraged buyout funds; power, energy, timber andinfrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. In the future, distributions will begenerated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of thefunds, the exact timing of which is uncertain.

(2) In connection with the adoption of new guidance related to the recognition and measurement of financial instruments (see Note 1 ), other limited partnershipinterests are measured at estimated fair value on a recurring basis effective January 1, 2018.

(3) As discussed in Note 3 , during the year ended December 31, 2016, the Company recognized an impairment of computer software in connection with theU.S. Retail Advisor Force Divestiture.

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10. Fair Value (continued)

FairValueofFinancialInstrumentsCarriedatOtherThanFairValue

The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tablesexclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and othertransactions, short-term debt and those short-term investments that are not securities, such as time deposits, and therefore are not included in the three-levelhierarchy table disclosed in the “— Recurring Fair Value Measurements” section. The estimated fair value of the excluded financial instruments, which areprimarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of materialchanges in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject tothis disclosure.

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized asfollows at:

December 31, 2018

Fair Value Hierarchy

CarryingValue Level 1 Level 2 Level 3

TotalEstimatedFair Value

(In millions)

Assets Mortgage loans $ 75,453 $ — $ — $ 76,379 $ 76,379Policy loans $ 9,699 $ — $ 338 $ 11,028 $ 11,366Other invested assets $ 1,177 $ — $ 793 $ 383 $ 1,176Premiums, reinsurance and other receivables $ 3,658 $ — $ 903 $ 2,894 $ 3,797Other assets $ 326 $ — $ 164 $ 186 $ 350Liabilities Policyholder account balances $ 114,040 $ — $ — $ 114,924 $ 114,924Long-term debt $ 12,820 $ — $ 13,611 $ — $ 13,611Collateral financing arrangement $ 1,060 $ — $ — $ 853 $ 853Junior subordinated debt securities $ 3,147 $ — $ 3,738 $ — $ 3,738Other liabilities $ 2,963 $ — $ 1,324 $ 2,194 $ 3,518Separate account liabilities $ 104,010 $ — $ 104,010 $ — $ 104,010

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Notes to the Consolidated Financial Statements — (continued)

10. Fair Value (continued)

December 31, 2017

Fair Value Hierarchy

CarryingValue Level 1 Level 2 Level 3

TotalEstimatedFair Value

(In millions)

Assets Mortgage loans $ 68,211 $ — $ — $ 69,797 $ 69,797Policy loans $ 9,669 $ — $ 336 $ 11,176 $ 11,512Other limited partnership interests $ 219 $ — $ — $ 216 $ 216Other invested assets $ 443 $ — $ — $ 443 $ 443Premiums, reinsurance and other receivables $ 4,155 $ — $ 1,283 $ 3,056 $ 4,339Other assets $ 285 $ — $ 189 $ 139 $ 328Liabilities Policyholder account balances $ 114,355 $ — $ — $ 116,534 $ 116,534Long-term debt $ 15,675 $ — $ 17,773 $ — $ 17,773Collateral financing arrangement $ 1,121 $ — $ — $ 894 $ 894Junior subordinated debt securities $ 3,144 $ — $ 4,319 $ — $ 4,319Other liabilities $ 3,208 $ — $ 1,496 $ 2,345 $ 3,841Separate account liabilities $ 124,011 $ — $ 124,011 $ — $ 124,011

11. Goodwill

Goodwill is the excess of cost over the estimated fair value of net assets acquired. Goodwill is not amortized but is tested for impairment at least annually ormore frequently if events or circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test.The goodwill impairment process requires a comparison of the estimated fair value of a reporting unit to its carrying value. The Company tests goodwill forimpairment by either performing a qualitative assessment or a quantitative test. The qualitative impairment assessment is an assessment of historical informationand relevant events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount,including goodwill. The Company may elect not to perform the qualitative impairment assessment for some or all of its reporting units and perform a quantitativeimpairment test. In performing the quantitative impairment test, the Company may determine the fair values of its reporting units by applying a market multiple,discounted cash flow, and/or an actuarial-based valuation approach.

The valuation methodologies utilized are subject to key judgments and assumptions that are sensitive to change. Estimates of fair value are inherentlyuncertain and represent only management’s reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon whichthe estimates are based will, in all likelihood, differ in some respects from actual future results. Declines in the estimated fair value of the Company’s reportingunits could result in goodwill impairments in future periods which could materially adversely affect the Company’s results of operations or financial position.

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Notes to the Consolidated Financial Statements — (continued)

11. Goodwill (continued)

Information regarding goodwill by segment, as well as Corporate & Other, was as follows:

U.S. Asia (1) LatinAmerica EMEA MetLife

Holdings Corporate& Other Total

(In millions)

Balance at January 1, 2016 Goodwill $ 1,451 $ 4,508 $ 1,186 $ 1,143 $ 1,567 $ 42 $ 9,897Accumulated impairment (2) — — — — (680) — (680)

Total goodwill, net 1,451 4,508 1,186 1,143 887 42 9,217Dispositions (3) — — — — — (42) (42)

Effect of foreign currency translation and other — 88 40 (83) — — 45Balance at December 31, 2016 Goodwill 1,451 4,596 1,226 1,060 1,567 — 9,900Accumulated impairment — — — — (680) — (680)

Total goodwill, net 1,451 4,596 1,226 1,060 887 — 9,220Acquisition — — — — — 103 103Dispositions (4) — — (16) — — — (16)

Effect of foreign currency translation and other — 77 96 110 — — 283Balance at December 31, 2017 Goodwill 1,451 4,673 1,306 1,170 1,567 103 10,270Accumulated impairment — — — — (680) — (680)

Total goodwill, net 1,451 4,673 1,306 1,170 887 103 9,590Effect of foreign currency translation and other — 17 (134) (51) — — (168)Balance at December 31, 2018 Goodwill 1,451 4,690 1,172 1,119 1,567 103 10,102Accumulated impairment — — — — (680) — (680)

Total goodwill, net $ 1,451 $ 4,690 $ 1,172 $ 1,119 $ 887 $ 103 $ 9,422__________________

(1) Includes goodwill of $4.5 billion , $4.5 billion and $4.4 billion from the Japan operations at December 31, 2018, 2017 and 2016, respectively.

(2) The $680 million accumulated impairment in the MetLife Holdings segment relates to the retail annuities business impaired in 2012 that was not part of theSeparation. See Note 3.

(3) In connection with the U.S. Retail Advisor Force Divestiture, goodwill in Corporate & Other was reduced by $42 million for the year ended December 31,2016. See Note 3 .

(4) In connection with the disposition of MetLife Afore, goodwill was reduced by $16 million for the year ended December 31, 2017. See Note 3 .

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Notes to the Consolidated Financial Statements — (continued)

12. Long-term and Short-term Debt

Long-term and short-term debt outstanding, excluding debt relating to CSEs, was as follows:

December 31,

Interest Rates (1) 2018 2017

Range Weighted Average Maturity

FaceValue

UnamortizedDiscount and

Issuance Costs CarryingValue Face

Value UnamortizedDiscount and

Issuance Costs CarryingValue

(In millions)

Senior notes3.00% - 6.50% 4.96% 2020 - 2046 $ 11,923 $ (79) $ 11,844 $ 14,685 $ (86) $ 14,599

Surplus notes7.63% - 7.88% 7.79% 2024 - 2025 507 (4) 503 507 (5) 502

Other notes (2)2.99% - 6.50% 4.92% 2020 - 2058 477 $ (4) 473 578 (4) 574

Capital lease obligations 4 — 4 5 — 5Total long-term debt 12,911 (87) 12,824 15,775 (95) 15,680

Total short-term debt 268 — 268 477 — 477Total $ 13,179 $ (87) $ 13,092 $ 16,252 $ (95) $ 16,157

__________________

(1) Range of interest rates and weighted average interest rates are for the year ended December 31, 2018 .

(2) During 2017, an affiliate issued $139 million of long-term debt to a third party.

The aggregate maturities of long-term debt at December 31, 2018 for the next five years and thereafter are $2 million in 2019, $512 million in 2020,$368 million in 2021, $797 million in 2022, $1.0 billion in 2023 and $10.1 billion thereafter.

Capital lease obligations are collateralized and rank highest in priority, followed by unsecured senior notes and other notes, followed by subordinated debtwhich consists of junior subordinated debt securities (see Note 14 ). Payments of interest and principal on the Company’s surplus notes, which are subordinate toall other obligations of the operating company issuing the notes and are senior to obligations of MetLife, Inc., may be made only with the prior approval of theinsurance department of the state of domicile of the notes issuer. The Company’s collateral financing arrangement (see Note 13 ) is supported by surplus notes of asubsidiary and, accordingly, has priority consistent with surplus notes.

Certain of the Company’s debt instruments and committed facilities, as well as its unsecured revolving credit facility, contain various administrative, reporting,legal and financial covenants. The Company believes it was in compliance with all applicable financial covenants at December 31, 2018 .

SeniorNotes

In June 2018, MetLife, Inc. sold FVO Brighthouse Common Stock in exchange for $944 million aggregate principal amount of MetLife Inc.’s senior notes.MetLife, Inc. purchased and canceled $343 million of its $1,035 million aggregate principal amount 6.817% senior notes due August 2018; $469 million of its$1,035 million aggregate principal amount 7.717% senior notes due February 2019 and $132 million of its $1,000 million aggregate principal amount 4.750%senior notes due February 2021. In June 2018, MetLife, Inc. additionally purchased for cash and canceled $160 million of its $1,035 million aggregate principalamount 6.817% senior notes due August 2018. The Company recorded a premium of $30 million paid in excess of the debt principal and incurred $37 million ofadvisory and other fees related to the exchange transaction to other expenses for the year ended December 31, 2018. See Note 3 for additional information on theFVO Brighthouse Common Stock exchange transaction.

In August 2018, MetLife, Inc. purchased for cash and canceled the remaining $566 million of its $1,035 million aggregate principal amount 7.717% seniornotes due February 2019. The Company recorded a premium of $14 million paid in excess of the debt principal and accrued, unpaid interest to other expenses forthe year ended December 31, 2018.

In December 2018, MetLife, Inc. purchased for cash and canceled an additional $500 million of its $1,000 million aggregate principal amount 4.750% seniornotes due February 2021. The Company recorded a premium of $18 million paid in excess of the debt principal and accrued, unpaid interest to other expenses forthe year ended December 31, 2018.

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Notes to the Consolidated Financial Statements — (continued)

12. Long-term and Short-term Debt (continued)

TermLoans

MetLife Private Equity Holdings, LLC (“MPEH”), a wholly-owned indirect investment subsidiary of MLIC, borrowed $350 million in December 2015 undera five-year credit agreement included within other notes in the table above. In November 2017, this agreement was amended to extend the maturity to November2022 , change the amount MPEH may borrow on a revolving basis to $75 million from $100 million , and change the interest rate to a variable rate of three-monthLondon Interbank Offered Rate (“LIBOR”) plus 3.25% , payable quarterly, from a variable rate of three-month LIBOR plus 3.70% . In December 2018, thisagreement was further amended to change the interest rate to a variable rate of three-month LIBOR plus 3.10% . In connection with the initial borrowing in 2015,$6 million of costs were incurred, and additional costs of $1 million were incurred in connection with the 2017 amendment, which have been capitalized and arebeing amortized over the term of the loans. MPEH has pledged invested assets to secure the loans; however, these loans are non-recourse to MLIC and MetLife,Inc. In December 2018, MPEH repaid $50 million of the initial borrowing.

Short-termDebt

Short-term debt with maturities of one year or less was as follows:

December 31,

2018 2017 (Dollars in millions)Commercial paper $ 99 $ 100Short-term borrowings (1) 169 377Total short-term debt $ 268 $ 477

Average daily balance $ 429 $ 280Average days outstanding 32 days 27 days__________________

(1) Includes $169 million and $374 million at December 31, 2018 and 2017 , respectively, of short-term debt related to repurchase agreements, secured byassets of subsidiaries.

During the years ended December 31, 2018 , 2017 and 2016 , the weighted average interest rate on short-term debt was 3.02% , 2.41% and 1.32% ,respectively.

InterestExpense

Interest expense included in other expenses was $827 million , $841 million and $874 million for the years ended December 31, 2018 , 2017 and 2016 ,respectively. Such amounts do not include interest expense on long-term debt related to CSEs, the collateral financing arrangement, or junior subordinated debtsecurities. See Notes 13 and 14 .

CreditandCommittedFacilities

At December 31, 2018 , the Company maintained a $3.0 billion unsecured revolving credit facility (the “Credit Facility”) and certain committed facilities (the“Committed Facilities”) aggregating $3.3 billion . When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements.

CreditFacility

The Company’s Credit Facility is used for general corporate purposes, to support the borrowers’ commercial paper programs and for the issuance of lettersof credit. Total fees associated with the Credit Facility were $10 million , $13 million and $15 million for the years ended December 31, 2018 , 2017 and 2016 ,respectively, and were included in other expenses. Information on the Credit Facility at December 31, 2018 was as follows:

Borrower(s) Expiration Maximum Capacity

Letters of Credit Issued Drawdowns

Unused Commitments

(In millions)MetLife, Inc. and MetLife Funding, Inc. December 2021 (1) $ 3,000 (1) $ 446 $ — $ 2,554__________________

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Notes to the Consolidated Financial Statements — (continued)

12. Long-term and Short-term Debt (continued)

(1) All borrowings under the Credit Facility must be repaid by December 20, 2021 , except that letters of credit outstanding upon termination may remainoutstanding until December 20, 2022 .

CommittedFacilities

Letters of credit issued under the Committed Facilities are used for collateral for certain of the Company’s affiliated reinsurance liabilities. Total feesassociated with the Committed Facilities, included in other expenses, were $15 million , $21 million and $27 million for the years ended December 31, 2018 ,2017 and 2016 , respectively. Total fees associated with the Committed Facilities, included in income (loss) from discontinued operations, net of income tax,were $305 million and $69 million for the years ended December 31, 2017 and 2016 , respectively. See Note 3 for fees associated with termination of financingarrangements included within 2017 amounts. Information on the Committed Facilities at December 31, 2018 was as follows:

Account Party/Borrower(s) Expiration Maximum Capacity

Letters of Credit Issued Drawdowns

Unused Commitments

(In millions)MetLife Reinsurance Company of Vermont and

MetLife, Inc. December 2024 (1), (2) $ 400 $ 385 $ — $ 15MetLife Reinsurance Company of Vermont and

MetLife, Inc. December 2037 (1), (3) 2,896 2,420 — 476

Total $ 3,296 $ 2,805 $ — $ 491__________________

(1) MetLife, Inc. is a guarantor under the applicable facility.

(2) Capacity decreases in June 2022, December 2022, June 2023, December 2023 and December 2024 to $380 million , $360 million , $310 million ,$260 million and $0 , respectively.

(3) Capacity at December 31, 2018 of $2.6 billion increases periodically to a maximum of $2.9 billion in 2024, decreases periodically commencing in 2025 to$2.0 billion in 2037, and decreases to $0 at expiration in December 2037. Unused commitment of $476 million is based on maximum capacity. AtDecember 31, 2018 , Brighthouse is a beneficiary of $2.4 billion of letters of credit issued under this facility and, in consideration, Brighthouse reimbursesMetLife, Inc. for a portion of the letter of credit fees. See Note 3 .

In addition to the Committed Facilities, see also “— Term Loans” for information about the undrawn line of credit facility in the amount of $75 million .

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Notes to the Consolidated Financial Statements — (continued)

13. Collateral Financing Arrangement

Information related to the collateral financing arrangement associated with the closed block (see Note 7 ) was as follows at:

December 31,

2018 2017 (In millions)Surplus notes outstanding (1) $ 1,060 $ 1,121Receivable from unaffiliated financial institution (1) $ 139 $ 146Pledged collateral (2) $ 83 $ 97Assets held in trust (2) $ 1,370 $ 1,248__________________

(1) Carrying value.

(2) Estimated fair value.

Interest expense on the collateral financing arrangement was $37 million , $30 million and $24 million for the years ended December 31, 2018 , 2017 and2016 , respectively, which is included in other expenses.

In December 2007, MLIC reinsured a portion of its closed block liabilities to MetLife Reinsurance Company of Charleston (“MRC”), a wholly-ownedsubsidiary of MetLife, Inc. In connection with this transaction, MRC issued, to investors placed by an unaffiliated financial institution, $2.5 billion in aggregateprincipal amount of 35 -year surplus notes to provide statutory reserve support for the assumed closed block liabilities. Interest on the surplus notes accrues at anannual rate of three-month LIBOR plus 0.55% , payable quarterly. The ability of MRC to make interest and principal payments on the surplus notes is contingentupon South Carolina regulatory approval.

Simultaneously with the issuance of the surplus notes, MetLife, Inc. entered into an agreement with the unaffiliated financial institution, under whichMetLife, Inc. is entitled to the interest paid by MRC on the surplus notes of three-month LIBOR plus 0.55% in exchange for the payment of three-month LIBORplus 1.12% , payable quarterly on such amount as adjusted, as described below. MetLife, Inc. may also be required to pledge collateral or make payments to theunaffiliated financial institution related to any decline in the estimated fair value of the surplus notes. Any such payments are accounted for as a receivable andincluded in other assets on the Company’s consolidated balance sheets and do not reduce the principal amount outstanding of the surplus notes. Such payments,however, reduce the amount of interest payments due from MetLife, Inc. under the agreement. Any payment received from the unaffiliated financial institutionreduces the receivable by an amount equal to such payment and also increases the amount of interest payments due from MetLife, Inc. under the agreement. Inaddition, the unaffiliated financial institution may be required to pledge collateral to MetLife, Inc. related to any increase in the estimated fair value of the surplusnotes. MetLife, Inc. may also be required to make a payment to the unaffiliated financial institution in connection with any early termination of this agreement.

During 2018 , 2017 and 2016 following regulatory approval, MRC repurchased $61 million , $153 million and $68 million , respectively, in aggregateprincipal amount of the surplus notes. Cumulatively, since December 2007, MRC repurchased $1.4 billion in aggregate principal amount of the surplus notes as ofDecember 31, 2018 . Payments made by the Company in 2018 , 2017 and 2016 associated with the repurchases were exclusive of accrued interest on the surplusnotes. In connection with the repurchases during 2018 , 2017 and 2016 , the Company received payments in the aggregate amount of $7 million , $20 million and$8 million , respectively, from the unaffiliated financial institution, which reduced the amount receivable from the unaffiliated financial institution by the sameamounts. No other payments related to an increase or decrease in the estimated fair value of the surplus notes were made by MetLife, Inc. or received from theunaffiliated financial institution during 2018 , 2017 or 2016 .

A majority of the proceeds from the offering of the surplus notes was placed in a trust, which is consolidated by the Company, to support MRC’s statutoryobligations associated with the assumed closed block liabilities. During the year ended December 31, 2018 , MRC transferred $97 million to the trust out of itsgeneral account. During the years ended December 31, 2017 and 2016 , MRC transferred $3 million and $1 million , respectively, out of the trust to its generalaccount. The assets are principally invested in fixed maturity securities AFS and are presented as such within the Company’s consolidated balance sheets, with therelated income included within net investment income on the Company’s consolidated statements of operations.

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Notes to the Consolidated Financial Statements — (continued)

14. Junior Subordinated Debt Securities

OutstandingJuniorSubordinatedDebtSecurities

Outstanding junior subordinated debt securities and exchangeable surplus trust securities which are exchangeable for junior subordinated debt securities priorto redemption or repayment, were as follows:

December 31,

2018 2017

Issuer IssueDate Interest

Rate (1) Scheduled

RedemptionDate

Interest RateSubsequent to

ScheduledRedemption

Date (2) FinalMaturity Face

Value Unamortized

Discountand Issuance Costs Carrying

Value Face Value

Unamortized Discount

and Issuance Costs CarryingValue

(In millions)

MetLife, Inc. December 2006 6.400% December 2036 LIBOR + 2.205% December 2066 $ 1,250 $ (19) $ 1,231 $ 1,250 $ (21) $ 1,229MetLife Capital

Trust IV (3) December 2007 7.875% December 2037 LIBOR + 3.960% December 2067 700 (16) 684 700 (17) 683

MetLife, Inc. (4) April 2008 9.250% April 2038 LIBOR + 5.540% April 2068 750 (11) 739 750 (11) 739

MetLife, Inc. July 2009 10.750% August 2039 LIBOR + 7.548% August 2069 500 (7) 493 500 (7) 493

$ 3,200 $ (53) $ 3,147 $ 3,200 $ (56) $ 3,144

_________________

(1) Prior to the scheduled redemption date, interest is payable semiannually in arrears.

(2) In the event the securities are not redeemed on or before the scheduled redemption date, interest will accrue after such date at an annual rate of three-monthLIBOR plus the indicated margin, payable quarterly in arrears.

(3) MetLife Capital Trust IV is a VIE which is consolidated on the financial statements of the Company. The securities issued by this entity are exchangeablesurplus trust securities, which are exchangeable for a like amount of MetLife, Inc.’s junior subordinated debt securities on the scheduled redemption date,mandatorily under certain circumstances, and at any time upon MetLife, Inc. exercising its option to redeem the securities.

(4) On February 10, 2017, in connection with the Separation, MetLife, Inc. exchanged $750 million aggregate principal amount of its 9.250% Fixed-to-FloatingRate Junior Subordinated Debentures due 2068 for $750 million aggregate liquidation preference of the 9.250% Fixed-to-Floating Rate ExchangeableSurplus Trust Securities of MetLife Capital Trust X (the “Trust”). As a result of the exchange, MetLife, Inc. became the sole beneficial owner of the Trust,an SPE, which issued the exchangeable surplus trust securities to third-party investors. On March 23, 2017, MetLife, Inc. dissolved the Trust.

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Notes to the Consolidated Financial Statements — (continued)

14. Junior Subordinated Debt Securities (continued)

In connection with each of the securities described above, MetLife, Inc. may redeem or may cause the redemption of the securities (i) in whole or in part, atany time on or after the date five years prior to the scheduled redemption date at their principal amount plus accrued and unpaid interest to, but excluding, the dateof redemption, or (ii) in certain circumstances, in whole or in part, prior to the date five years prior to the scheduled redemption date at their principal amount plusaccrued and unpaid interest to, but excluding, the date of redemption or, if greater, a make-whole price. MetLife, Inc. also has the right to, and in certaincircumstances the requirement to, defer interest payments on the securities for a period up to 10 years. Interest compounds during such periods of deferral. Ifinterest is deferred for more than five consecutive years, MetLife, Inc. is required to use proceeds from the sale of its common stock or warrants on common stockto satisfy this interest payment obligation. In connection with each of the securities described above, MetLife, Inc. entered into a separate replacement capitalcovenant (“RCC”). As part of each RCC, MetLife, Inc. agreed that it will not repay, redeem, or purchase the securities on or before a date 10 years prior to the finalmaturity date of each issuance, unless, subject to certain limitations, it has received cash proceeds during a specified period from the sale of specified replacementsecurities. Each RCC will terminate upon the occurrence of certain events, including an acceleration of the applicable securities due to the occurrence of an eventof default. The RCCs are not intended for the benefit of holders of the securities and may not be enforced by them. Rather, each RCC is for the benefit of theholders of a designated series of MetLife, Inc.’s other indebtedness (the “Covered Debt”). Initially, the Covered Debt for each of the securities described above wasMetLife, Inc.’s 5.700% senior notes due 2035 (the “ 5.700% Senior Notes”). As a result of the issuance of MetLife, Inc.’s 10.750% Fixed-to-Floating Rate JuniorSubordinated Debentures due 2069 (the “ 10.750% JSDs”), the 10.750% JSDs became the Covered Debt with respect to, and in accordance with, the terms of theRCC relating to MetLife, Inc.’s 6.40% Fixed-to-Floating Rate Junior Subordinated Debentures due 2066 . The 5.700% Senior Notes continue to be the CoveredDebt with respect to, and in accordance with, the terms of the RCCs relating to each of MetLife Capital Trust IV’s 7.875% Fixed-to-Floating Rate ExchangeableSurplus Trust Securities, MetLife, Inc.’s 9.250% Fixed-to-Floating Rate Junior Subordinated Debentures and the 10.750% JSDs. MetLife, Inc. also entered into areplacement capital obligation which will commence during the six-month period prior to the scheduled redemption date of each of the securities described aboveand under which MetLife, Inc. must use reasonable commercial efforts to raise replacement capital to permit repayment of the securities through the issuance ofcertain qualifying capital securities.

Interest expense on outstanding junior subordinated debt securities was $258 million for each of the years ended December 31, 2018 , 2017 and 2016 , whichis included in other expenses.

15. Equity

PreferredStock

Preferred stock authorized, issued and outstanding was as follows:

December 31, 2018 December 31, 2017

SeriesShares

AuthorizedShares Issued

Shares Outstanding

Shares Authorized

Shares Issued

Shares Outstanding

Series A preferred stock 27,600,000 24,000,000 24,000,000 27,600,000 24,000,000 24,000,000

Series C preferred stock 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000

Series D preferred stock 500,000 500,000 500,000 — — —

Series E preferred stock 32,200 32,200 32,200 — — —

Series A Junior Participating Preferred Stock 10,000,000 — — 10,000,000 — —

Not designated 160,367,800 — — 160,900,000 — —

Total 200,000,000 26,032,200 26,032,200 200,000,000 25,500,000 25,500,000

In June 2018, MetLife, Inc. issued 32,200 shares of 5.625% Non-Cumulative Preferred Stock, Series E (the “Series E preferred stock”) with a $0.01 par valueper share and a liquidation preference of $25,000 per share, for aggregate net proceeds of $780 million . MetLife, Inc. deposited the Series E preferred stock undera deposit agreement with a depositary, which issued interests in fractional shares of the Series E preferred stock in the form of depositary shares (“DepositaryShares”) evidenced by depositary receipts; each Depositary Share representing 1/1,000th interest in a share of the Series E preferred stock. In connection with theoffering of the Depositary Shares, MetLife, Inc. incurred approximately $25 million of issuance costs which have been recorded as a reduction of additional paid-incapital.

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

In March 2018, MetLife, Inc. issued 500,000 shares of 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D (the “Series D preferredstock”) with a $0.01 par value per share and a liquidation preference of $1,000 per share, for aggregate net proceeds of $494 million . In connection with theoffering of the Series D preferred stock, MetLife, Inc. incurred $6 million of issuance costs which have been recorded as a reduction of additional paid-in capital.

The outstanding preferred stock ranks senior to MetLife, Inc.’s common stock with respect to the payment of dividends and distributions upon liquidation,dissolution or winding-up. Holders of the outstanding preferred stock are entitled to receive dividend payments only when, as and if declared by MetLife, Inc.’sBoard of Directors or a duly authorized committee thereof. Dividends on the preferred stock are not cumulative or mandatory. Accordingly, if dividends are notdeclared on the preferred stock of the applicable series for any dividend period, then any accrued dividends for that dividend period will cease to accrue and bepayable. If a dividend is not declared before the dividend payment date for any such dividend period, MetLife, Inc. will have no obligation to pay dividendsaccrued for such dividend period whether or not dividends are declared for any future period. No dividends may be paid or declared on MetLife, Inc.’s commonstock (or any other securities ranking junior to the preferred stock) and MetLife, Inc. may not purchase, redeem, or otherwise acquire its common stock (or othersuch junior stock) unless the full dividends for the latest completed dividend period on all outstanding shares of preferred stock, and any parity stock, have beendeclared and paid or provided for.

The table below presents the dividend rates of MetLife, Inc.’s preferred stock outstanding at December 31, 2018:

Series Per Annum Dividend RateA Three-month LIBOR + 1.00%, with floor of 4.00%, payable quarterly in March, June, September and DecemberC

5.250% from issuance date to, but excluding, June 15, 2020, payable semiannually in June and December; three-month LIBOR + 3.575%, payable quarterly inMarch, June, September and December, thereafter

D

5.875% from issuance date to, but excluding, March 15, 2028, payable semiannually in March and September commencing in September 2018; three-month LIBOR+ 2.959% payable quarterly in March, June, September and December, thereafter

E 5.625% from issuance date, payable quarterly in March, June, September and December, commencing in September 2018

In the table above, dividends on each series of preferred stock are payable in arrears for the periods specified, if declared.

MetLife, Inc. is prohibited from declaring dividends on the Floating Rate Non-Cumulative Preferred Stock, Series A (the “Series A preferred stock”) if it failsto meet specified capital adequacy, net income and stockholders’ equity levels. See “— Dividend Restrictions — MetLife, Inc.”

Holders of the preferred stock do not have voting rights except in certain circumstances, including where the dividends have not been paid for an equivalent ofsix or more dividend payment periods whether or not those periods are consecutive. Under such circumstances, the holders of the preferred stock have certainvoting rights with respect to members of the Board of Directors of MetLife, Inc.

The preferred stock is not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions. The Series A preferredstock is redeemable at MetLife, Inc.’s option in whole or in part, at a redemption price of $25 per share of preferred stock, plus declared and unpaid dividends.

MetLife, Inc. may, at its option, redeem the 5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C (the “Series C preferred stock”), (i) inwhole but not in part, at any time prior to June 15, 2020, within 90 days after the occurrence of a “regulatory capital event,” and (ii) in whole or in part, from timeto time, on or after June 15, 2020, in each case, at a redemption price equal to $1,000 per Series C preferred share, plus an amount equal to any dividends per sharethat have accrued but not been declared and paid for the then-current dividend period to, but excluding, such redemption date. A “regulatory capital event” couldoccur as a result of a change or proposed change in capital adequacy rules (or the interpretation or application thereof) that would apply to MetLife, Inc. from rules(or the interpretation or application thereof) in effect with respect to bank holding companies as of June 1, 2015 that would create a more than insubstantial risk, asdetermined by MetLife, Inc., that the Series C preferred stock would not be treated as “Tier 1 Capital” or as capital with attributes similar to those of Tier 1 Capital.

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

MetLife, Inc. may, at its option, redeem the Series D preferred stock, (i) in whole but not in part at any time prior to March 15, 2028, within 90 days after theoccurrence of a “rating agency event,” at a redemption price equal to $1,020 per share of Series D preferred stock, plus an amount equal to any dividends per sharethat have accrued but have not been declared and paid for the then-current dividend period to, but excluding, the redemption date; (ii) in whole but not in part, atany time prior to March 15, 2028, within 90 days after the occurrence of a “regulatory capital event”; and (iii) in whole or in part, from time to time, on or afterMarch 15, 2028, in the case of (ii) or (iii), at a redemption price equal to $1,000 per share of Series D preferred stock, plus an amount equal to any dividends pershare that have accrued but not been declared and paid for the then-current dividend period to, but excluding, such redemption date. MetLife, Inc. may, at itsoption, redeem the Series E preferred stock, (i) in whole but not in part at any time prior to June 15, 2023, within 90 days after the occurrence of a “rating agencyevent,” at a redemption price equal to $25,500 per share of Series E preferred stock, plus an amount equal to any dividends per share that have accrued but have notbeen declared and paid for the then-current dividend period to, but excluding, the redemption date; (ii) in whole but not in part, at any time prior to June 15, 2023,within 90 days after the occurrence of a “regulatory capital event”; and (iii) in whole or in part, from time to time, on or after June 15, 2023, in the case of (ii) or(iii), at a redemption price equal to $25,000 per share of Series E preferred stock, plus an amount equal to any dividends per share that have accrued but not beendeclared and paid for the then-current dividend period to, but excluding, such redemption date. A “rating agency event” means that any nationally recognizedstatistical rating organization that then publishes a rating for MetLife, Inc. amends, clarifies or changes the criteria used to assign equity credit to securities like theSeries D preferred stock or Series E preferred stock, which results in the lowering of the equity credit assigned to the Series D preferred stock or Series E preferredstock, as applicable, or shortens the length of time that the Series D preferred stock or Series E preferred stock, as applicable, is assigned a particular level of equitycredit. A “regulatory capital event” could occur as a result of a change or proposed change in capital adequacy rules (or the interpretation or application thereof) ofany capital regulator, including but not limited to the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), the Federal InsuranceOffice, the National Association of Insurance Commissioners (“NAIC”) or any state insurance regulator as may then have group-wide oversight of MetLife, Inc.’sregulatory capital, from rules (or the interpretation or application thereof) in effect as of March 22, 2018, in the case of the Series D preferred stock, or June 4,2018, in the case of the Series E preferred stock, that would create a more than insubstantial risk, as determined by MetLife, Inc., that the Series D preferred stockor the Series E preferred stock, as applicable, would not be treated as “Tier 1 capital” or as capital with attributes similar to those of Tier 1 capital, except that a“regulatory capital event” will not include a change or proposed change (or the interpretation or application thereof) that would result in the adoption of any criteriasubstantially the same as the criteria in the capital adequacy rules of the Federal Reserve Board applicable to bank holding companies as of March 22, 2018, in thecase of the Series D preferred stock, or June 4, 2018, in the case of the Series E preferred stock.

On December 31, 2018, RCCs related to the Series A preferred stock and the Series C preferred stock expired.

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

The declaration, record and payment dates, as well as per share and aggregate dividend amounts, for MetLife, Inc.’s preferred stock were as follows for theyears ended December 31, 2018 , 2017 and 2016 :

Preferred Stock Dividend

Series A Series C Series D Series E

Declaration Date Record Date Payment Date Per Share Aggregate Per Share Aggregate Per Share Aggregate Per Share Aggregate

(In millions, except per share data)

Year Ended December 31, 2018 November 15,

2018 November 30, 2018 December 17, 2018 $ 0.253 $ 6 $ 26.250 $ 40 $ — $ — $ 351.563 $ 11August 15, 2018 August 31, 2018 September 17, 2018 0.256 6 — — 28.233 14 394.531 12May 15, 2018 May 31, 2018 June 15, 2018 0.256 7 26.250 39 — — — —March 5, 2018 February 28, 2018 March 15, 2018 0.250 6 — — — — — —

Total $ 1.015 $ 25 $ 52.500 $ 79 $ 28.233 $ 14 $ 746.094 $ 23

Year Ended December 31, 2017 November 15,

2017 November 30, 2017 December 15, 2017 $ 0.253 $ 6 $ 26.250 $ 39 $ — $ — $ — $ —August 15, 2017 August 31, 2017 September 15, 2017 0.256 6 — — — — — —May 15, 2017 May 31, 2017 June 15, 2017 0.256 7 26.250 39 — — — —March 6, 2017 February 28, 2017 March 15, 2017 0.250 6 — — — — — —

Total $ 1.015 $ 25 $ 52.500 $ 78 $ — $ — $ — $ —

Year Ended December 31, 2016 November 15,

2016 November 30, 2016 December 15, 2016 $ 0.253 $ 6 $ 26.250 $ 39 $ — $ — $ — $ —August 15, 2016 August 31, 2016 September 15, 2016 0.256 6 — — — — — —May 16, 2016 May 31, 2016 June 15, 2016 0.256 7 26.250 39 — — — —March 7, 2016 February 29, 2016 March 15, 2016 0.253 6 — — — — — —

Total $ 1.018 $ 25 $ 52.500 $ 78 $ — $ — $ — $ —

See Note 22 for information on subsequent preferred stock dividends declared.

CommonStock

Issuances

During the years ended December 31, 2018 , 2017 and 2016 , MetLife, Inc. issued 3,114,141 shares, 4,680,116 shares and 4,439,219 shares of its commonstock for $108 million , $158 million and $166 million , respectively, in connection with stock option exercises and other stock-based awards. There were noshares of common stock issued from treasury stock for each of the years ended December 31, 2018 , 2017 and 2016 .

RepurchaseAuthorizations

In November 2016, MetLife, Inc. announced that its Board of Directors authorized $3.0 billion of common stock repurchases in addition to previouslyauthorized repurchases . I n November 2017, MetLife, Inc. announced that its Board of Directors authorized $2.0 billion of common stock repurchases. In May2018 and November 2018, MetLife, Inc. announced that its Board of Directors authorized $1.5 billion and $2.0 billion of common stock repurchases,respectively.

During the years ended December 31, 2018 , 2017 and 2016 , MetLife, Inc. repurchased 88,029,138 shares, 56,599,540 shares and 6,948,739 shares underthese repurchase authorizations for $4.0 billion , $2.9 billion , and $372 million , respectively. At December 31, 2018 , MetLife, Inc. had $1.3 billion remainingunder its common stock repurchase authorization. See Note 22 for information on subsequent common stock repurchases.

Under these authorizations, MetLife, Inc. may purchase its common stock from the MetLife Policyholder Trust, in the open market (including pursuant tothe terms of a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934 (“Exchange Act”)), and in privatelynegotiated transactions. Common stock repurchases are subject to the discretion of MetLife, Inc.’s Board of Directors and will depend upon the Company’scapital position, liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared tomanagement’s assessment of the stock’s underlying value, applicable regulatory approvals, and other legal and accounting factors.

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

Dividends

The declaration, record and payment dates, as well as per share and aggregate dividend amounts, for MetLife, Inc.’s common stock were as follows for theyears ended December 31, 2018 , 2017 and 2016 :

Dividend

Declaration Date Record Date Payment Date Per Share Aggregate

(In millions, except per share data)Year Ended December 31, 2018 October 23, 2018 November 6, 2018 December 13, 2018 $ 0.420 $ 415

July 6, 2018 August 6, 2018 September 13, 2018 0.420 419

April 24, 2018 May 7, 2018 June 13, 2018 0.420 428

January 5, 2018 February 5, 2018 March 13, 2018 0.400 416

Total $ 1.660 $ 1,678

Year Ended December 31, 2017 October 24, 2017 November 6, 2017 December 13, 2017 $ 0.400 $ 422

July 7, 2017 August 7, 2017 September 13, 2017 0.400 427

April 25, 2017 May 8, 2017 June 13, 2017 0.400 431

January 6, 2017 February 6, 2017 March 13, 2017 0.400 437

Total $ 1.600 $ 1,717

Year Ended December 31, 2016 October 25, 2016 November 7, 2016 December 13, 2016 $ 0.400 $ 441

July 7, 2016 August 8, 2016 September 13, 2016 0.400 441

April 26, 2016 May 9, 2016 June 13, 2016 0.400 441

January 6, 2016 February 5, 2016 March 14, 2016 0.375 413

Total $ 1.575 $ 1,736

See Note 22 for information on subsequent common stock dividends declared.

The funding of the cash dividends and operating expenses of MetLife, Inc. is primarily provided by cash dividends from MetLife, Inc.’s insurancesubsidiaries. The statutory capital and surplus, or net assets, of MetLife, Inc.’s insurance subsidiaries are subject to regulatory restrictions except to the extentthat dividends are allowed to be paid in a given year without prior regulatory approval. Dividends exceeding these limitations can generally be made subject toregulatory approval. The nature and amount of these dividend restrictions, as well as the statutory capital and surplus of MetLife, Inc.’s U.S. insurancesubsidiaries, are disclosed in “— Statutory Equity and Income” and “— Dividend Restrictions — Insurance Operations.” MetLife, Inc.’s principal non-U.S.insurance operations are branches or subsidiaries of American Life Insurance Company (“American Life”), a U.S. insurance subsidiary of the Company. Inaddition, the payment of dividends by MetLife, Inc. to its shareholders is also subject to restrictions. See “— Dividend Restrictions — MetLife, Inc.”

Stock-BasedCompensationPlans

PlansforEmployeesandAgents

Under the MetLife, Inc. 2015 Stock and Incentive Compensation Plan (the “2015 Stock Plan”), MetLife, Inc. may grant awards to employees and agents inthe form of Stock Options, Stock Appreciation Rights, Performance Shares or Performance Share Units, Restricted Stock or Restricted Stock Units, Cash-BasedAwards and Stock-Based Awards (each, as applicable, as defined in the 2015 Stock Plan with reference to shares of MetLife, Inc. common stock (“Shares”)).Awards under the 2015 Stock Plan and its predecessor plan, the MetLife, Inc. 2005 Stock and Incentive Compensation Plan (the “2005 Stock Plan”) wereoutstanding at December 31, 2018 . MetLife, Inc. granted all awards to employees and agents in 2018 under the 2015 Stock Plan.

The aggregate number of Shares authorized for issuance under the 2015 Stock Plan at December 31, 2018 was 37,344,024 .

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

With the exception of Performance Shares MetLife, Inc. granted in 2013 through 2018, which are re-measured quarterly, MetLife recognizes compensationexpense related to awards under the 2005 Stock Plan or 2015 Stock Plan based on the number of awards it expects to vest, which represents the awards grantedless expected forfeitures over the life of the award, as estimated at the date of grant. Unless MetLife observes a material deviation from the assumed forfeiturerate during the term in which the awards are expensed, MetLife recognizes any adjustment necessary to reflect differences in actual experience in the period theaward becomes payable or exercisable.

Compensation expense related to awards under the 2005 Stock Plan principally relates to the issuance of Stock Options. Under the 2015 Stock Plan,compensation expense principally relates to Stock Options, Unit Options, Performance Shares, Performance Units, Restricted Stock Units and Restricted Units.MetLife, Inc. granted the majority of each year’s awards under the 2005 Stock Plan and 2015 Stock Plan in the first quarter of the year.

Awards that have become payable in Shares but the issuance of which has been deferred (“Deferred Shares”), payable to employees or agents related toawards under all plans equaled 1,188,792 Shares at December 31, 2018 .

MetLife granted cash-settled awards based in whole or in part on the price of Shares or changes in the price of Shares (“Phantom Stock-Based Awards”)under the MetLife, Inc. International Unit Option Incentive Plan, the MetLife International Performance Unit Incentive Plan, and the MetLife InternationalRestricted Unit Incentive Plan prior to 2015, and under the 2015 Stock Plan in 2015 and later.

PlansforNon-ManagementDirectors

Under the MetLife, Inc. 2015 Non-Management Director Stock Compensation Plan (the “2015 Director Stock Plan”), MetLife, Inc. may grant non-management Directors of MetLife, Inc. awards in the form of nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock or Restricted StockUnits, or Stock-Based Awards (each, as applicable, as defined in the 2015 Director Stock Plan with reference to Shares).

The only awards MetLife, Inc. granted under the 2015 Director Stock Plan and its predecessor plan, the MetLife, Inc. 2005 Non-Management Director StockCompensation Plan (the “2005 Director Stock Plan”), through December 31, 2018 were Stock-Based Awards that vested immediately. As a result, no awardsunder the 2005 Director Stock Plan or 2015 Director Stock Plan remained outstanding at December 31, 2018 .

The aggregate number of Shares authorized for issuance under the 2015 Director Stock Plan at December 31, 2018 was 1,660,961 .

MetLife recognizes compensation expense related to awards under the 2015 Director Stock Plan based on the number of Shares awarded. MetLife, Inc.granted the majority of the awards in 2015 and 2016 under the 2015 Director Stock Plan in the second quarter of each year.

Deferred Shares payable to Directors related to awards under the 2005 Director Stock Plan, 2015 Director Stock Plan, or earlier applicable plans equaled246,391 Shares at December 31, 2018 .

CompensationExpenseRelatedtoStock-BasedCompensation

The components of compensation expense related to stock-based compensation includes compensation expense related to Phantom Stock-Based Awards,and excludes the insignificant compensation expense related to the 2015 Director Stock Plan. Those components were:

Years Ended December 31,

2018 2017 2016

(In millions)

Stock Options and Unit Options $ 6 $ 8 $ 9Performance Shares and Performance Units (1) 23 62 75Restricted Stock Units and Restricted Units 57 58 63

Total compensation expense $ 86 $ 128 $ 147Income tax benefit $ 18 $ 45 $ 51__________________

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

(1) The Company may further adjust the number of Performance Shares it expects to vest, and the related compensation expense, if management changes itsestimate of the most likely final performance factor.

The following table presents the total unrecognized compensation expense related to stock-based compensation and the expected weighted average periodover which these expenses will be recognized at:

December 31, 2018

Expense Weighted Average

Period

(In millions) (Years)

Stock Options $ 3 1.12Performance Shares $ 21 1.72Restricted Stock Units $ 32 1.27

EquityAwards

Stock Options

Stock Options are the contingent right of award holders to purchase Shares at a stated price for a limited time. All Stock Options have an exercise priceequal to the closing price of a Share reported on the New York Stock Exchange (“NYSE”) on the date of grant, and have a maximum term of 10 years. Themajority of Stock Options MetLife, Inc. has granted have become or will become exercisable at a rate of one-third of each award on each of the first threeanniversaries of the grant date. Other Stock Options have become or will become exercisable on the third anniversary of the grant date. Vesting is subject tocontinued service, except for employees who meet specified age and service criteria and in certain other limited circumstances.

A summary of the activity related to Stock Options was as follows:

SharesUnderOption

WeightedAverageExercise

Price

WeightedAverage

RemainingContractual

Term

AggregateIntrinsicValue (1)

(Years) (In millions)

Outstanding at January 1, 2018 16,009,754 $ 38.77 3.54 $ 198Granted 523,946 $ 45.50 Exercised (1,611,987) $ 33.68 Expired (2) (2,488,045) $ 53.63 Forfeited (3) (78,374) $ 41.90

Outstanding at December 31, 2018 12,355,294 $ 36.70 3.56 $ 66Vested and expected to vest at December 31, 2018 12,343,714 $ 36.70 3.55 $ 66Exercisable at December 31, 2018 11,116,386 $ 35.96 3.02 $ 64__________________

(1) The intrinsic value of each Stock Option is the closing price on a particular date less the exercise price of the Stock Option, so long as the difference isgreater than zero. The aggregate intrinsic value of all outstanding Stock Options is computed using the closing Share price on December 31, 2018 of $41.06and December 31, 2017 of $50.56 , as applicable.

(2) Expired options were exercisable, but unexercised, as of their expiration date.

(3) Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria forpost-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of theawards.

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

MetLife estimates the fair value of Stock Options on the date of grant using a binomial lattice model. The significant assumptions the Company uses in itsbinomial lattice model include: expected volatility of the price of Shares; risk-free rate of return; dividend yield on Shares; exercise multiple; and the post-vesting termination rate.

MetLife bases expected volatility on an analysis of historical prices of Shares and call options on Shares traded on the open market. The Company uses aweighted-average of the implied volatility for publicly-traded call options with the longest remaining maturity nearest to the money as of each valuation dateand the historical volatility, calculated using monthly closing prices of Shares. The Company chose a monthly measurement interval for historical volatility asthis interval reflects the Company’s view that employee option exercise decisions are based on longer-term trends in the price of the underlying Shares ratherthan on daily price movements.

The Company’s binomial lattice model incorporates different risk-free rates based on the imputed forward rates for U.S. Treasury Strips for each yearover the contractual term of the option. The table below presents the full range of rates that were used for options granted during the respective periods.

The Company determines dividend yield based on historical dividend distributions compared to the price of the underlying Shares as of the valuation dateand held constant over the life of the Stock Option.

The Company’s binomial lattice model incorporates the term of the Stock Options, expected exercise behavior and a post-vesting termination rate, or therate at which vested options are exercised or expire prematurely due to termination of employment. From these factors, the model derives an expected life ofthe Stock Option. The model’s exercise behavior is a multiple that reflects the ratio of stock price at the time of exercise over the exercise price of the StockOption at the time the model expects holders to exercise. The model derives the exercise multiple from actual exercise activity. The model determines the post-vesting termination rate from actual exercise experience and expiration activity under the Incentive Plans.

The following table presents the weighted average assumptions, with the exception of risk-free rate (which is expressed as a range), that the model uses todetermine the fair value of unexercised Stock Options:

Years Ended December 31,

2018 2017 2016Dividend yield 3.52% 3.05% 3.90%Risk-free rate of return 2.02% - 3.40% 0.94% - 3.22% 0.62% - 2.85%Expected volatility 34.18% 34.19% 33.58%Exercise multiple 1.43 1.43 1.43Post-vesting termination rate 3.77% 2.94% 2.58%Contractual term (years) 10 10 10Expected life (years) 6 6 7Weighted average exercise price of stock options granted $45.50 $46.85 $34.33Weighted average fair value of stock options granted $11.87 $12.36 $8.27

The following table presents a summary of Stock Option exercise activity:

Years Ended December 31,

2018 2017 2016 (In millions)Total intrinsic value of stock options exercised $ 24 $ 59 $ 42Cash received from exercise of stock options $ 54 $ 116 $ 84Income tax benefit realized from stock options exercised $ 5 $ 20 $ 15

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

Performance Shares

Performance Shares are units that, if they vest, are multiplied by a performance factor to produce a number of final Performance Shares which are payablein Shares. MetLife accounts for Performance Shares as equity awards. MetLife, Inc. does not credit Performance Shares with dividend-equivalents fordividends paid on Shares. Performance Share awards normally vest in their entirety at the end of the three-year performance period. Vesting is subject tocontinued service, except for employees who meet specified age and service criteria and in certain other limited circumstances.

For awards granted for the 2016 – 2018 and later performance periods in progress through December 31, 2018 , the vested Performance Shares will bemultiplied by a performance factor of 0% to 175% that the MetLife, Inc. Compensation Committee will determine in its discretion (subject to MetLife, Inc.meeting threshold performance goals related to its adjusted income or total shareholder return). In doing so, the Compensation Committee may considerMetLife, Inc.’s total shareholder return relative to the performance of its competitors and adjusted return on MetLife, Inc.’s common stockholders’ equityrelative to its financial plan. MetLife estimates the fair value of Performance Shares each quarter until they become payable. The performance factor for the2015 - 2017 performance period was 46.3% .

Restricted Stock Units

Restricted Stock Units are units that, if they vest, are payable in an equal number of Shares. MetLife accounts for Restricted Stock Units as equity awards.MetLife, Inc. does not credit Restricted Stock Units with dividend-equivalents for dividends paid on Shares. Accordingly, the estimated fair value ofRestricted Stock Units is based upon the closing price of Shares on the date of grant, reduced by the present value of estimated dividends to be paid on thatstock.

The majority of Restricted Stock Units normally vest in thirds on or shortly after the first three anniversaries of their grant date. Other Restricted StockUnits normally vest in their entirety on the third or later anniversary of their grant date. Vesting is subject to continued service, except for employees who meetspecified age and service criteria and in certain other limited circumstances.

The following table presents a summary of Performance Share and Restricted Stock Unit activity:

Performance Shares Restricted Stock Units

Shares

Weighted Average

Fair Value (1) Units

Weighted Average

Fair Value (1)

Outstanding at January 1, 2018 4,033,760 $ 46.02 3,304,377 $ 37.17Granted 1,405,903 $ 34.31 1,446,289 $ 40.00Forfeited (2) (201,146) $ 40.88 (201,914) $ 38.79Payable (3) (1,194,283) $ 46.34 (1,602,483) $ 37.04Outstanding at December 31, 2018 4,044,234 $ 34.18 2,946,269 $ 38.52Vested and expected to vest at December 31, 2018 3,984,022 $ 34.18 2,903,433 $ 38.49

__________________

(1) Values for awards outstanding at January 1, 2018, represent weighted average number of awards multiplied by the fair value per Share at December 31,2017. Otherwise, all values represent weighted average of number of awards multiplied by the fair value per Share at December 31, 2018 . Fair value ofRestricted Stock Units on December 31, 2018 was equal to Grant Date fair value.

(2) Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria forpost-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of theawards.

(3) Includes both Shares paid and Deferred Shares for later payment.

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

Performance Share amounts above represent aggregate awards at target, and do not reflect potential increases or decreases that may result from theperformance factor. At December 31, 2018 , the performance period for the 2016 — 2018 Performance Share grants was completed, but the performancefactor had not yet been determined. Included in the immediately preceding table are 1,594,846 outstanding Performance Shares to which the 2016 — 2018performance factor will be applied.

LiabilityAwards(PhantomStock-BasedAwards)

Certain MetLife subsidiaries have a liability for Phantom Stock-Based Awards in the form of Unit Options, Performance Units, and/or Restricted Units.These Share-based cash settled awards are recorded as liabilities until MetLife makes payment. The fair value of unsettled or unvested liability awards is re-measured at the end of each reporting period based on the change in fair value of one Share. The liability and corresponding expense are adjusted accordinglyuntil the award is settled.

Unit Options

Unit Options are the contingent right of award holders to receive a cash payment equal to the closing price of a Share on the exercise date, less the closingprice on the grant date, if the difference is greater than zero, for a limited time. All Unit Options have an exercise price equal to the closing price of a Sharereported on the NYSE on the date of grant, and have a maximum term of 10 years. The majority of Unit Options have become or will become eligible forexercise at a rate of one-third of each award on each of the first three anniversaries of the grant date. Other Unit Options have become or will become eligiblefor exercise on the third anniversary of the grant date. Vesting is subject to continued service, except for employees who meet specified age and service criteriaand in certain other limited circumstances.

Performance Units

Performance Units are units that, if they vest, are multiplied by a performance factor to produce a number of final Performance Units which are payable incash equal to the closing price of a Share on a date following the last day of the three-year performance period. Performance Units are accounted for asliability awards. MetLife, Inc. does not credit them with dividend-equivalents for dividends paid on Shares. Accordingly, the estimated fair value ofPerformance Units is based upon the closing price of a Share on the date of grant, reduced by the present value of estimated dividends to be paid on that stockduring the performance period.

See “— Equity Awards — Performance Shares” for a discussion of the Performance Shares vesting period and performance factor calculation, which arealso used for Performance Units.

Restricted Units

Restricted Units are units that, if they vest, are payable in cash equal to the closing price of a Share on the last day of the restriction period. The majorityof Restricted Units normally vest in thirds on or shortly after the first three anniversaries of their grant date. Other Restricted Units normally vest in theirentirety on the third or later anniversary of their grant date. Vesting is subject to continued service, except for employees who meet specified age and servicecriteria and in certain other limited circumstances. Restricted Units are accounted for as liability awards. MetLife, Inc. does not credit Restricted Units withdividend-equivalents for dividends paid on Shares. Accordingly, the estimated fair value of Restricted Units is based upon the closing price of a Share on thedate of grant, reduced by the present value of estimated dividends to be paid on that stock during the performance period.

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

The following table presents a summary of Liability Awards activity:

Unit

Options Performance

Units Restricted

Units

Outstanding at January 1, 2018 681,012 688,229 779,076Granted 37,904 235,076 392,549Exercised (54,361) — —Expired (1) (118,107) — —Forfeited (2) — (142,621) (140,321)Paid — (186,085) (362,202)

Outstanding at December 31, 2018 546,448 594,599 669,102Vested and expected to vest at December 31, 2018 539,165 577,005 651,263__________________

(1) Expired options were exercisable, but unexercised, as of their expiration date.

(2) Forfeited awards were either (a) unvested or unexercisable at the end of the awardholder’s employment, where the awardholder did not meet the criteria forpost-employment award continuation; or (b) held by awardholders the Company terminated from employment for cause as defined in the terms of theawards.

Performance Units amounts above represent aggregate awards at target, and do not reflect potential increases or decreases that may result from theperformance factor. At December 31, 2018, the performance period for the 2016 - 2018 Performance Unit grants was completed, but the performance factorhad not yet been determined. Included in the immediately preceding table are 212,464 outstanding Performance Units to which the 2016 - 2018 performancefactor will be applied.

StatutoryEquityandIncome

The states of domicile of MetLife, Inc.’s U.S. insurance subsidiaries each impose risk-based capital (“RBC”) requirements that were developed by the NAIC.American Life does not write business in Delaware or any other U.S. state and, as such, is exempt from RBC requirements by Delaware law. Regulatorycompliance is determined by a ratio of a company’s total adjusted capital, calculated in the manner prescribed by the NAIC (“TAC”) to its authorized control levelRBC, calculated in the manner prescribed by the NAIC (“ACL RBC”), based on the statutory-based filed financial statements. Companies below specific triggerlevels or ratios are classified by their respective levels, each of which requires specified corrective action. The minimum level of TAC before corrective actioncommences is twice ACL RBC (“Company Action Level RBC”). While not required by or filed with insurance regulators, the Company also calculates aninternally defined combined RBC ratio (“Statement-Based Combined RBC Ratio”), which is determined by dividing the sum of TAC for MetLife, Inc.’s principalU.S. insurance subsidiaries, excluding American Life, by the sum of Company Action Level RBC for such subsidiaries. The Company’s Statement-BasedCombined RBC Ratio was in excess of 360% and in excess of 390% at December 31, 2018 and 2017 , respectively. In addition, all non-exempted U.S. insurancesubsidiaries individually exceeded Company Action Level RBC for all periods presented.

MetLife, Inc.’s foreign insurance operations are regulated by applicable authorities of the jurisdictions in which each entity operates and are subject tominimum capital and solvency requirements in those jurisdictions before corrective action commences. At December 31, 2018 and 2017 , the adjusted capital ofAmerican Life’s insurance subsidiary in Japan, the Company’s largest foreign insurance operation, was in excess of four times the 200% solvency margin ratio thatwould require corrective action. Excluding Japan, the aggregate required capital and surplus of the Company’s other foreign insurance operations was $4.1 billionand the aggregate actual regulatory capital and surplus of such operations was $11.1 billion as of the date of the most recent required capital adequacy calculationfor each jurisdiction. The Company’s foreign insurance operations exceeded the minimum capital and solvency requirements as of the date of the most recent fiscalyear-end capital adequacy calculation for each jurisdiction, with immaterial exceptions.

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

MetLife, Inc.’s insurance subsidiaries prepare statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted bythe insurance department of the state of domicile or applicable foreign jurisdiction. The NAIC has adopted the Codification of Statutory AccountingPrinciples (“Statutory Codification”). Statutory Codification is intended to standardize regulatory accounting and reporting to state insurance departments.However, statutory accounting principles continue to be established by individual state laws and permitted practices. Modifications by the various state insurancedepartments may impact the effect of Statutory Codification on the statutory capital and surplus of MetLife, Inc.’s U.S. insurance subsidiaries.

Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefitliabilities using different actuarial assumptions, reporting surplus notes as surplus instead of debt and valuing securities on a different basis.

In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. The most significant assets not admittedby the Company are net deferred income tax assets resulting from temporary differences between statutory accounting principles basis and tax basis not expected toreverse and become recoverable within three years. Further, statutory accounting principles do not give recognition to purchase accounting adjustments.MetLife, Inc.’s U.S. insurance subsidiaries have no material state prescribed accounting practices, except as described below.

New York has adopted certain prescribed accounting practices, primarily consisting of the continuous Commissioners’ Annuity Reserve Valuation Method,which impacts deferred annuities, and the New York Special Consideration Letter, which mandates certain assumptions in asset adequacy testing. The collectiveimpact of these prescribed accounting practices decreased the statutory capital and surplus of MLIC for the years ended December 31, 2018 and 2017 by$1.2 billion and $1.1 billion , respectively, compared to what capital and surplus would have been had it been measured under NAIC guidance.

American Life calculates its policyholder reserves on insurance written in each foreign jurisdiction in accordance with the reserve standards required by suchjurisdiction. Additionally, American Life’s insurance subsidiaries are valued based on each respective subsidiary’s underlying local statutory equity, adjusted in amanner consistent with the reporting prescribed for its branch operations. The prescribed practice exempts American Life from calculating and disclosing theimpact to its statutory capital and surplus. The tables below present amounts from MetLife, Inc.’s U.S. insurance subsidiaries, which are derived from the statutory-basis financial statements as filed with the insurance regulators.

Statutory net income (loss) was as follows:

Years Ended December 31,

Company State of Domicile 2018 2017 2016

(In millions)Metropolitan Life Insurance Company (1) New York $ 3,656 $ 1,982 $ 3,444American Life Insurance Company Delaware $ 2,086 $ 3,077 $ 341Brighthouse Life Insurance Company (2) Delaware N/A N/A $ 1,186Metropolitan Property and Casualty Insurance Company Rhode Island $ 345 $ 197 $ 171Metropolitan Tower Life Insurance Company (3) Nebraska $ 76 $ 164 $ 8New England Life Insurance Company (2) Massachusetts N/A N/A $ 109Other (4) Various $ 16 $ 11 $ (70)__________________

(1) In December 2016, MLIC transferred all of the issued and outstanding shares of the common stock of each of New England Life Insurance Company(“NELICO”) and General American Life Insurance Company (“GALIC”) to MetLife, Inc., in the form of a non-cash extraordinary dividend.

(2) In April 2017, in connection with the Separation, MetLife, Inc. contributed all of the issued and outstanding shares of common stock of each of BrighthouseInsurance and NELICO to Brighthouse Holdings, LLC. As a result of the Separation, Brighthouse Insurance and NELICO ceased to be subsidiaries ofMetLife, Inc.

(3) In April 2018, Metropolitan Tower Life Insurance Company (“MTL”) merged with GALIC (“MTL Merger”). The surviving entity of the merger was MTL,which re-domesticated from Delaware to Nebraska immediately prior to the merger. For the year ended December 31, 2016, MTL’s statutory net income(loss) is as filed with the Delaware Department of Insurance and accordingly, does not include GALIC’s statutory net income (loss) of ($2) million .

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

(4) In April 2017, in connection with the Separation, MetLife, Inc. contributed all of the issued and outstanding shares of Brighthouse Life Insurance Companyof NY (“Brighthouse NY”) to Brighthouse Holdings, LLC. As a result of the Separation, Brighthouse NY ceased to be a subsidiary of MetLife, Inc. For theyear ended December 31, 2016, statutory net income (loss) of Brighthouse NY was ($87) million .

Statutory capital and surplus was as follows at:

December 31,

Company 2018 2017

(In millions)Metropolitan Life Insurance Company $ 11,098 $ 10,384American Life Insurance Company $ 4,921 $ 6,548Metropolitan Property and Casualty Insurance Company $ 2,322 $ 2,266Metropolitan Tower Life Insurance Company (1) $ 1,549 $ 1,751Other $ 106 $ 100__________________

(1) See discussion of MTL Merger above.

The Company’s U.S. captive life reinsurance subsidiaries, which reinsure risks including the closed block, level premium term life and ULSG assumed fromother MetLife subsidiaries, have no state prescribed accounting practices, except for MRV.

MRV, with the explicit permission of the Commissioner of Insurance of the State of Vermont, has included, as admitted assets, the value of letters of creditserving as collateral for reinsurance credit taken by various affiliated cedants, in connection with reinsurance agreements entered into between MRV and thevarious affiliated cedants, which resulted in higher statutory capital and surplus of $2.8 billion and $2.7 billion for the years ended December 31, 2018 and 2017 ,respectively. MRV’s RBC would have triggered a regulatory event without the use of the state prescribed practice.

The combined statutory net income (loss) of MetLife, Inc. ’s U.S. captive life reinsurance subsidiaries was ($59) million , $2.1 billion and ($344) million forthe years ended December 2018 , 2017 and 2016 , respectively, and the combined statutory capital and surplus, including the aforementioned prescribed practice,was $1.7 billion at both December 31, 2018 and 2017 .

DividendRestrictions

InsuranceOperations

The table below sets forth the dividends permitted to be paid by MetLife, Inc.’s primary insurance subsidiaries without insurance regulatory approval andthe actual dividends paid:

2019 2018 2017

Company Permitted Without

Approval (1) Paid (2) Paid (2)

(In millions) Metropolitan Life Insurance Company $ 3,096 $ 3,736 $ 2,523 American Life Insurance Company $ — $ 3,200 $ 2,200 Metropolitan Property and Casualty Insurance Company $ 171 $ 233 $ 185Metropolitan Tower Life Insurance Company (3) $ 154 $ 191 $ — General American Life Insurance Company (3) N/A $ — $ 1 __________________

(1) Reflects dividend amounts that may be paid by the end of 2019 without prior regulatory approval.

(2) Reflects all amounts paid, including those where regulatory approval was obtained as required.

(3) See discussion of MTL Merger above.

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

Under the New York State Insurance Law, MLIC is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to MetLife, Inc. inany calendar year based on either of two standards. Under one standard, MLIC is permitted, without prior insurance regulatory clearance, to pay dividends out ofearned surplus (defined as positive unassigned funds (surplus), excluding 85% of the change in net unrealized capital gains or losses (less capital gains tax), forthe immediately preceding calendar year), in an amount up to the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately precedingcalendar year, or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains), not to exceed 30% ofsurplus to policyholders as of the end of the immediately preceding calendar year. In addition, under this standard, MLIC may not, without prior insuranceregulatory clearance, pay any dividends in any calendar year immediately following a calendar year for which its net gain from operations, excluding realizedcapital gains, was negative. Under the second standard, if dividends are paid out of other than earned surplus, MLIC may, without prior insurance regulatoryclearance, pay an amount up to the lesser of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its statutorynet gain from operations for the immediately preceding calendar year (excluding realized capital gains). In addition, MLIC will be permitted to pay a dividend toMetLife, Inc. in excess of the amounts allowed under both standards only if it files notice of its intention to declare such a dividend and the amount thereof withthe New York Superintendent of Financial Services (the “Superintendent”) and the Superintendent either approves the distribution of the dividend or does notdisapprove the dividend within 30 days of its filing. Under the New York State Insurance Law, the Superintendent has broad discretion in determining whetherthe financial condition of a stock life insurance company would support the payment of such dividends to its stockholder.

Under the Delaware Insurance Code, American Life is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend toMetLife, Inc. as long as the amount of the dividend, when aggregated with all other dividends in the preceding 12 months, does not exceed the greater of: (i) 10%of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its net statutory gain from operations for the immediatelypreceding calendar year (excluding realized capital gains), not including pro rata distributions of American Life’s own securities. American Life will bepermitted to pay a dividend to MetLife, Inc. in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and theamount thereof with the Delaware Commissioner of Insurance (the “Delaware Commissioner”) and the Delaware Commissioner either approves the distributionof the dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as “unassignedfunds (surplus)”) as of the immediately preceding calendar year requires insurance regulatory approval. Under the Delaware Insurance Code, the DelawareCommissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of suchdividends to its stockholders.

Under the Rhode Island Insurance Code, Metropolitan Property and Casualty Insurance Company (“MPC”) is permitted, without prior insurance regulatoryclearance, to pay a stockholder dividend to MetLife, Inc. as long as the aggregate amount of all such dividends in any 12 month period does not exceed the lesserof: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) net income, not including realized capital gains, for theimmediately preceding calendar year, not including pro rata distributions of MPC’s own securities. In determining whether a dividend is extraordinary, MPCmay include carry forward net income from the previous two calendar years, excluding realized capital gains less dividends paid in the second and immediatelypreceding calendar years. MPC will be permitted to pay a dividend to MetLife, Inc. in excess of the lesser of such two amounts only if it files notice of itsintention to declare such a dividend and the amount thereof with the Rhode Island Commissioner of Insurance (the “Rhode Island Commissioner”) and theRhode Island Commissioner either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. Under the RhodeIsland Insurance Code, the Rhode Island Commissioner has broad discretion in determining whether the financial condition of a stock property and casualtyinsurance company would support the payment of such dividends to its stockholders.

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

Under the Nebraska Insurance Code, MTL is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to MetLife, Inc. as longas the amount of the dividend, when aggregated with all other dividends in the preceding 12 months, does not exceed the greater of: (i) 10% of its surplus topolicyholders as of the end of the immediately preceding calendar year, or (ii) its net statutory gain from operations for the immediately preceding calendar year(excluding realized capital gains), not including pro rata distributions of MTL’s own securities. MTL will be permitted to pay a dividend to MetLife, Inc. inexcess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Director of the NebraskaDepartment of Insurance (the “Nebraska Director”) and the Nebraska Director either approves the distribution of the dividend or does not disapprove thedistribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as “unassigned funds (surplus)”), excluding unrealizedcapital gains) as of the immediately preceding calendar year requires insurance regulatory approval. Under the Nebraska Insurance Code, the Nebraska Directorhas broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to itsstockholders.

MetLife,Inc.

In addition to regulatory restrictions on the payment of dividends by its insurance subsidiaries to MetLife, Inc., the payment of dividends by MetLife, Inc. toits stockholders is also subject to other restrictions. The declaration and payment of dividends are subject to the discretion of MetLife, Inc.’s Board of Directorsand will depend on its financial condition, results of operations, cash requirements, future prospects and other factors deemed relevant by the Board of Directors.In addition, the payment of dividends on MetLife, Inc.’s common stock, and MetLife, Inc.’s ability to repurchase its common stock, may be subject torestrictions described below arising under the terms of MetLife, Inc.’s Series A preferred stock and its junior subordinated debentures in situations whereMetLife, Inc. may be experiencing financial stress, as described below. For purposes of this discussion, “junior subordinated debentures” are deemed to includeMetLife, Inc.’s Fixed-to-Floating Rate Exchangeable Surplus Trust Securities, as discussed in Note 14 .

“Dividend Stopper” Provisions in the Preferred Stock and Junior Subordinated Debentures . If MetLife, Inc. has not paid the full dividends on its preferredstock for the latest completed dividend period, MetLife, Inc. may not repurchase or pay dividends on its common stock during a dividend period under so-called“dividend stopper” provisions. Further, MetLife, Inc.’s Series A preferred stock and its junior subordinated debentures contain provisions that would suspend thepayment of preferred stock dividends and interest on junior subordinated debentures if MetLife, Inc. fails to meet certain risk-based capital ratio, net income andstockholders’ equity tests at specified times, except to the extent of the net proceeds from the issuance of certain securities during specified periods. If Series Apreferred stock dividends or interest on junior subordinated debentures are not paid, certain provisions in those instruments (including under “dividend stopper”provisions) may restrict MetLife, Inc. from repurchasing its common or preferred stock or paying dividends on its common or preferred stock and interest on itsjunior subordinated debentures.

The junior subordinated debentures further provide that MetLife, Inc. may, at its option and provided that certain conditions are met, defer payment ofinterest without giving rise to an event of default for periods of up to 10 years. In that case, after five years MetLife, Inc. would be obligated to use commerciallyreasonable efforts to sell equity securities to raise proceeds to pay the interest. MetLife, Inc. would not be subject to limitations on the number of deferral periodsthat MetLife, Inc. could begin, so long as all accrued and unpaid interest is paid with respect to prior deferral periods. If MetLife, Inc. were to defer payments ofinterest, the “dividend stopper” provisions in the junior subordinated debentures would thus prevent MetLife, Inc. from repurchasing or paying dividends on itscommon stock or other capital stock (including the preferred stock) during the period of deferral, subject to exceptions.

MetLife, Inc. is a party to certain RCCs which limit its ability to eliminate these restrictions through the repayment, redemption or purchase of juniorsubordinated debentures by requiring MetLife, Inc., with some limitations, to receive cash proceeds during a specified period from the sale of specifiedreplacement securities prior to any repayment, redemption or purchase. See Note 14 for a description of such covenants.

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

AccumulatedOtherComprehensiveIncome(Loss)

Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc., was as follows:

UnrealizedInvestment Gains(Losses), Net of

Related Offsets (1) Unrealized Gains

(Losses) onDerivatives

ForeignCurrency

TranslationAdjustments

DefinedBenefitPlans

Adjustment Total

(In millions)

Balance at December 31, 2015 $ 10,311 $ 1,458 $ (4,950) $ (2,052) $ 4,767OCI before reclassifications 800 344 (476) (62) 606Deferred income tax benefit (expense) (338) (100) 114 24 (300)

AOCI before reclassifications, net of income tax 10,773 1,702 (5,312) (2,090) 5,073Amounts reclassified from AOCI 21 229 — 193 443Deferred income tax benefit (expense) (9) (66) — (75) (150)

Amounts reclassified from AOCI, net of income tax 12 163 — 118 293Balance at December 31, 2016 10,785 1,865 (5,312) (1,972) 5,366OCI before reclassifications 5,392 (140) 765 (23) 5,994Deferred income tax benefit (expense) (1,732) 47 125 8 (1,552)

AOCI before reclassifications, net of income tax 14,445 1,772 (4,422) (1,987) 9,808Amounts reclassified from AOCI (289) (1,025) — 167 (1,147)Deferred income tax benefit (expense) 87 356 — (43) 400

Amounts reclassified from AOCI, net of income tax (202) (669) — 124 (747)Disposal of subsidiary (3) (2,286) (305) 51 28 (2,512)

Deferred income tax benefit (expense) 800 107 (19) (10) 878Disposal of subsidiary, net of income tax (1,486) (198) 32 18 (1,634)

Balance at December 31, 2017 12,757 905 (4,390) (1,845) 7,427OCI before reclassifications (8,735) 157 (679) 143 (9,114)Deferred income tax benefit (expense) 1,961 (41) 36 (35) 1,921

AOCI before reclassifications, net of income tax 5,983 1,021 (5,033) (1,737) 234Amounts reclassified from AOCI 14 517 — 120 651Deferred income tax benefit (expense) (3) (135) — (29) (167)

Amounts reclassified from AOCI, net of income tax 11 382 — 91 484Cumulative effects of changes in accounting principles (425) — — — (425)Deferred income tax benefit (expense), cumulative effects of

changes in accounting principles 1,473 210 36 (382) 1,337Cumulative effects of changes in accounting principles, net of

income tax (2) 1,048 210 36 (382) 912Sale of subsidiary (3) — — 92 — 92Balance at December 31, 2018 $ 7,042 $ 1,613 $ (4,905) $ (2,028) $ 1,722__________________

(1) See Note 8 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation.

(2) See Note 1 for further information on adoption of new accounting pronouncements.

(3) See Note 3 .

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Notes to the Consolidated Financial Statements — (continued)

15. Equity (continued)

Information regarding amounts reclassified out of each component of AOCI was as follows:

AOCI Components Amounts Reclassified from AOCI Consolidated Statements ofOperations Locations

Years Ended December 31, 2018 2017 2016 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 6 $ 404 $ 78 Net investment gains (losses)Net unrealized investment gains (losses) (1) 20 39 Net investment incomeNet unrealized investment gains (losses) (19) (49) (37) Net derivative gains (losses)Net unrealized investment gains (losses) — (86) (101) Discontinued operations

Net unrealized investment gains (losses), before income tax (14) 289 (21) Income tax (expense) benefit 3 (87) 9

Net unrealized investment gains (losses), net of income tax (11) 202 (12) Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps 23 24 56 Net derivative gains (losses)Interest rate swaps 18 16 12 Net investment incomeInterest rate swaps — 2 36 Discontinued operationsInterest rate forwards (2) (11) (1) Net derivative gains (losses)Interest rate forwards 2 2 4 Net investment incomeInterest rate forwards 1 1 1 Other expensesInterest rate forwards — 3 4 Discontinued operationsForeign currency swaps (558) 974 (350) Net derivative gains (losses)Foreign currency swaps (5) — (2) Net investment incomeForeign currency swaps 2 2 2 Other expensesForeign currency swaps — 11 5 Discontinued operationsCredit forwards 1 1 3 Net derivative gains (losses)Credit forwards 1 — 1 Net investment income

Gains (losses) on cash flow hedges, before income tax (517) 1,025 (229) Income tax (expense) benefit 135 (356) 66

Gains (losses) on cash flow hedges, net of income tax (382) 669 (163) Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses) (145) (190) (199) Amortization of prior service (costs) credit 25 23 6

Amortization of defined benefit plan items, before income tax (120) (167) (193) Income tax (expense) benefit 29 43 75

Amortization of defined benefit plan items, net of income tax (91) (124) (118) Total reclassifications, net of income tax $ (484) $ 747 $ (293)

__________________

(1) These AOCI components are included in the computation of net periodic benefit costs. See Note 17 .

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Notes to the Consolidated Financial Statements — (continued)

16. Other Revenues and Other Expenses

OtherRevenues

Information on other revenues, which primarily includes fees related to service contracts from customers, was as follows:

Year Ended

December 31, 2018

(In millions)

Prepaid legal plans $ 296Fee-based investment management 293Recordkeeping and administrative services (1) 221Administrative services-only contracts 205Other revenue from service contracts from customers 241

Total revenues from service contracts from customers $ 1,256Other 624

Total other revenues $ 1,880

(1) Related to products and businesses no longer actively marketed by the Company.

OtherExpenses

Information on other expenses was as follows:

Years Ended December 31,

2018 2017 2016

(In millions)

Employee related costs $ 3,664 $ 3,595 $ 3,840Third party staffing costs 1,703 1,693 1,619General and administrative expenses 910 1,129 1,007Pension, postretirement and postemployment benefit costs 185 307 400Premium taxes, other taxes, and licenses & fees 758 842 688Commissions and other variable expenses 5,707 5,387 5,741Capitalization of DAC (3,254) (3,002) (3,152)Amortization of DAC and VOBA 2,975 2,681 2,718Amortization of negative VOBA (56) (140) (269)Interest expense on debt 1,122 1,129 1,157

Total other expenses $ 13,714 $ 13,621 $ 13,749

See Note 3 for further information on Separation-related transaction costs.

CapitalizationofDACandAmortizationofDACandVOBA

See Note 5 for additional information on DAC and VOBA including impacts of capitalization and amortization. See also Note 7 for a description of theDAC amortization impact associated with the closed block.

ExpensesrelatedtoDebt

See Notes 12 , 13 , and 14 for attribution of interest expense by debt issuance and other expenses related to debt transactions.

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Notes to the Consolidated Financial Statements — (continued)

16. Other Revenues and Other Expenses (continued)

RestructuringCharges

The Company commenced in 2016 a unit cost improvement program related to the Company’s refreshed enterprise strategy. This global strategy focuses ontransforming the Company to become more digital, driving efficiencies and innovation to achieve competitive advantage, and simplified, decreasing the costsand risks associated with the Company’s highly complex industry to customers and shareholders. Restructuring charges related to this program are included inother expenses. As the expenses relate to an enterprise-wide initiative, they are reported in Corporate & Other. Such restructuring charges were as follows:

Years Ended December 31,

2018 2017 2016 Severance (In millions)Balance at January 1, $ 22 $ 35 $ —Restructuring charges 63 38 35Cash payments (62) (51) —Balance at December 31, $ 23 $ 22 $ 35

Total restructuring charges incurred since inception of initiative $ 136 $ 73 $ 35

Management anticipates further restructuring charges through the year ending December 31, 2019. However, such restructuring plans were not sufficientlydeveloped to enable management to make an estimate of such restructuring charges at December 31, 2018 .

In 2016, the Company completed a previous enterprise-wide strategic initiative. These restructuring charges were included in other expenses. As the expensesrelated to an enterprise-wide initiative, they were reported in Corporate & Other. Information regarding such restructuring charges was as follows:

Year Ended December 31, 2016

Severance

Lease andAsset

Impairment Total (In millions)

Balance at January 1, $ 18 $ 4 $ 22Restructuring charges — 1 1Cash payments (17) (4) (21)Balance at December 31, $ 1 $ 1 $ 2

Total restructuring charges incurred since inception of initiative $ 383 $ 47 $ 430

17. Employee Benefit Plans

PensionandOtherPostretirementBenefitPlans

Certain subsidiaries of MetLife, Inc. sponsor and/or administer a U.S. qualified and various U.S. and non-U.S. nonqualified defined benefit pension plans andother postretirement employee benefit plans covering employees who meet specified eligibility requirements. U.S. pension benefits are provided utilizing either atraditional formula or cash balance formula. The traditional formula provides benefits that are primarily based upon years of credited service and either finalaverage or career average earnings. The cash balance formula utilizes hypothetical or notional accounts which credit participants with benefits equal to apercentage of eligible pay, as well as interest credits, determined annually based upon the annual rate of interest on 30-year U.S. Treasury securities, for eachaccount balance. In September 2018, the U.S. qualified and nonqualified defined benefit pension plans were amended, effective January 1, 2023, to providebenefits accruals for all active participants under the cash balance formula and to cease future accruals under the traditional formula. The U.S. nonqualified pensionplans provide supplemental benefits in excess of limits applicable to a qualified plan. The non-U.S. pension plans generally provide benefits based upon eitheryears of credited service and earnings preceding retirement or points earned on job grades and other factors in years of service.

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Notes to the Consolidated Financial Statements — (continued)

17. Employee Benefit Plans (continued)

These subsidiaries also provide certain postemployment benefits and certain postretirement medical and life insurance benefits for U.S. and non-U.S. retiredemployees. Employees of these subsidiaries who were hired prior to 2003 (or, in certain cases, rehired during or after 2003) and meet age and service criteria whileworking for one of the subsidiaries may become eligible for these other postretirement benefits, at various levels, in accordance with the applicable plans. Virtuallyall retirees, or their beneficiaries, contribute a portion of the total costs of postretirement medical benefits. Employees hired after 2003 are not eligible for anyemployer subsidy for postretirement medical benefits. In September 2018, the U.S. postretirement medical and life insurance benefit plans were amended, effectiveJanuary 1, 2023, to discontinue the accrual of the employer subsidy credits for eligible employees.

The benefit obligations, funded status and net periodic benefit costs related to these pension and other postretirement benefits were comprised of the following:

December 31, 2018 December 31, 2017

Pension Benefits Other Postretirement

Benefits Pension Benefits Other Postretirement

Benefits

U.S.

Plans

Non-U.S.

Plans Total U.S.

Plans

Non-U.S.

Plans Total U.S.

Plans

Non-U.S.

Plans Total U.S.

Plans

Non-U.S.

Plans Total (In millions)Benefit

obligations $ 9,580 $ 1,011 $ 10,591 $ 1,288 $ 36 $ 1,324 $ 10,500 $ 909 $ 11,409 $ 1,648 $ 26 $ 1,674Estimated

fair valueof planassets 8,615 333 8,948 1,334 26 1,360 9,371 317 9,688 1,426 8 1,434

Over (under)fundedstatus $ (965) $ (678) $ (1,643) $ 46 $ (10) $ 36 $ (1,129) $ (592) $ (1,721) $ (222) $ (18) $ (240)

Net periodicbenefitcosts $ 176 $ 83 $ 259 $ (66) $ 2 $ (64) $ 267 $ 82 $ 349 $ (12) $ 2 $ (10)

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Notes to the Consolidated Financial Statements — (continued)

17. Employee Benefit Plans (continued)

ObligationsandFundedStatus

December 31,

2018 2017

Pension

Benefits (1)

OtherPostretirement

Benefits Pension

Benefits (1)

OtherPostretirement

Benefits (In millions)Change in benefit obligations: Benefit obligations at January 1, $ 11,409 $ 1,674 $ 10,741 $ 1,759Service costs 223 6 238 6Interest costs 391 55 429 76Plan participants’ contributions — 30 — 33Plan amendments (110) (7) — —Net actuarial (gains) losses (713) (348) 595 (95)Acquisition, divestitures, settlements and curtailments (6) 13 (27) —Benefits paid (623) (97) (600) (107)Effect of foreign currency translation 20 (2) 33 2Benefit obligations at December 31, 10,591 1,324 11,409 1,674Change in plan assets: Estimated fair value of plan assets at January 1, 9,688 1,434 9,009 1,386Actual return on plan assets (423) (27) 968 125Acquisition, divestitures and settlements (5) 16 (30) (1)Plan participants’ contributions — 32 — 33Employer contributions 306 4 329 (2)Benefits paid (623) (97) (600) (107)Effect of foreign currency translation 5 (2) 12 —Estimated fair value of plan assets at December 31, 8,948 1,360 9,688 1,434Over (under) funded status at December 31, $ (1,643) $ 36 $ (1,721) $ (240)

Amounts recognized on the consolidated balance sheets: Other assets $ 135 $ 373 $ 59 $ 160Other liabilities (1,778) (337) (1,780) (400)

Net amount recognized $ (1,643) $ 36 $ (1,721) $ (240)

AOCI: Net actuarial (gains) losses $ 2,979 $ (269) $ 2,917 $ (55)Prior service costs (credit) (118) (14) (11) (27)

AOCI, before income tax $ 2,861 $ (283) $ 2,906 $ (82)

Accumulated benefit obligation $ 10,301 N/A $ 10,996 N/A__________________

(1) Includes nonqualified unfunded plans, for which the aggregate PBO was $1.1 billion and $1.2 billion at December 31, 2018 and 2017 , respectively.

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Notes to the Consolidated Financial Statements — (continued)

17. Employee Benefit Plans (continued)

Information for pension plans with PBOs in excess of plan assets and accumulated benefit obligations (“ABO”) in excess of plan assets was as follows at:

December 31,

2018 2017 2018 2017

PBO Exceeds Estimated Fair Value

of Plan Assets ABO Exceeds Estimated Fair Value

of Plan Assets (In millions)Projected benefit obligations $ 2,021 $ 2,016 $ 1,999 $ 1,996Accumulated benefit obligations $ 1,921 $ 1,904 $ 1,906 $ 1,890Estimated fair value of plan assets $ 301 $ 285 $ 280 $ 266

NetPeriodicBenefitCosts

The components of net periodic benefit costs and other changes in plan assets and benefit obligations recognized in OCI were as follows:

Years Ended December 31,

2018 2017 2016

Pension Benefits Other Postretirement

Benefits Pension Benefits Other Postretirement

Benefits Pension Benefits Other Postretirement

Benefits (In millions)Net periodic benefit costs: Service costs $ 223 $ 6 $ 238 $ 6 $ 272 $ 9Interest costs 391 55 429 76 423 82Settlement and curtailment costs (1) (1) — 4 2 2 19Expected return on plan assets (533) (71) (516) (72) (527) (75)Amortization of net actuarial (gains)

losses 182 (34) 195 — 189 10Amortization of prior service costs

(credit) (3) (20) (1) (22) — (6)Total net periodic benefit costs

(credit) 259 (64) 349 (10) 359 39Other changes in plan assets and

benefit obligations recognized inOCI:

Net actuarial (gains) losses 244 (248) 149 (146) 238 (124)Prior service costs (credit) (110) (7) (1) — (11) (41)Amortization of net actuarial (gains)

losses (182) 34 (195) — (189) (10)Amortization of prior service (costs)

credit 3 20 1 22 — 6Discontinued operations — — — — (1) 1Disposal of subsidiary — — (30) 2 — —

Total recognized in OCI (45) (201) (76) (122) 37 (168)Total recognized in net periodic

benefit costs and OCI $ 214 $ (265) $ 273 $ (132) $ 396 $ (129)__________________

(1) The Company recognized curtailment charges in 2016 on certain postretirement benefit plans in connection with the U.S. Retail Advisor Force Divestiture.See Note 3 .

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Notes to the Consolidated Financial Statements — (continued)

17. Employee Benefit Plans (continued)

The estimated net actuarial (gains) losses and prior service costs (credit) for the defined benefit pension plans and other postretirement benefit plans that willbe amortized from AOCI into net periodic benefit costs over the next year are $184 million and ($17) million , and ($34) million and ($11) million , respectively.

Assumptions

Assumptions used in determining benefit obligations for the U.S. plans were as follows:

Pension Benefits Other Postretirement Benefits

December 31, 2018 Weighted average discount rate 4.35% 4.35%

Rate of compensation increase 2.25% - 8.50% N/A

December 31, 2017 Weighted average discount rate 3.65% 3.70%

Rate of compensation increase 2.25% - 8.50% N/A

Assumptions used in determining net periodic benefit costs for the U.S. plans were as follows:

Pension Benefits Other Postretirement BenefitsYear Ended December 31, 2018 Weighted average discount rate 3.65% 3.70%Weighted average expected rate of return on plan assets 5.75% 5.11%Rate of compensation increase 2.25% - 8.50% N/AYear Ended December 31, 2017 Weighted average discount rate 4.30% 4.45%Weighted average expected rate of return on plan assets 6.00% 5.36%Rate of compensation increase 2.25% - 8.50% N/AYear Ended December 31, 2016 Weighted average discount rate 4.13% 4.37%Weighted average expected rate of return on plan assets 6.00% 5.53%Rate of compensation increase 2.25% - 8.50% N/A

The weighted average discount rate for the U.S. plans is determined annually based on the yield, measured on a yield to worst basis, of a hypotheticalportfolio constructed of high quality debt instruments available on the valuation date, which would provide the necessary future cash flows to pay the aggregatePBO when due.

The weighted average expected rate of return on plan assets for the U.S. plans is based on anticipated performance of the various asset sectors in which theplans invest, weighted by target allocation percentages. Anticipated future performance is based on long-term historical returns of the plan assets by sector,adjusted for the long-term expectations on the performance of the markets. While the precise expected rate of return derived using this approach will fluctuatefrom year to year, the policy is to hold this long-term assumption constant as long as it remains within reasonable tolerance from the derived rate.

The weighted average expected rate of return on plan assets for use in that plan’s valuation in 2019 is currently anticipated to be 5.75% for U.S. pensionbenefits and 5.11% for U.S. other postretirement benefits.

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Notes to the Consolidated Financial Statements — (continued)

17. Employee Benefit Plans (continued)

The assumed healthcare costs trend rates used in measuring the APBO and net periodic benefit costs were as follows:

December 31,

2018 2017BeforeAge 65

Age 65 andolder

BeforeAge 65

Age 65 andolder

Following year 5.4% 2.8% 5.6% 6.6%Ultimate rate to which cost increase is assumed to decline 3.9% 4.2% 4.0% 4.3%

Year in which the ultimate trend rate is reached 2080 2097 2086 2098

Assumed healthcare costs trend rates may have a significant effect on the amounts reported for healthcare plans. A 1% change in assumed healthcare coststrend rates would have the following effects on the U.S. plans as of December 31, 2018 :

One Percent

Increase One Percent

Decrease (In millions)Effect on total of service and interest costs components $ 5 $ (4)Effect of accumulated postretirement benefit obligations $ 121 $ (102)

PlanAssets

Certain U.S. subsidiaries provide employees with benefits under various Employee Retirement Income Security Act of 1974 (“ERISA”) benefit plans. Theseinclude qualified pension plans, postretirement medical plans and certain retiree life insurance coverage. The assets of these U.S. subsidiaries’ qualified pensionplans are held in an insurance group annuity contract, and the vast majority of the assets of the postretirement medical plan and backing the retiree life coverageare held in a trust which largely utilizes insurance contracts to hold the assets. All of these contracts are issued by the Company’s insurance affiliates, and theassets under the contracts are held in insurance separate accounts that have been established by the Company. The underlying assets of the separate accounts areprincipally comprised of cash and cash equivalents, short-term investments, fixed maturity securities AFS, equity securities, derivatives, real estate, privateequity investments and hedge fund investments.

The insurance contract provider engages investment management firms (“Managers”) to serve as sub-advisors for the separate accounts based on thespecific investment needs and requests identified by the plan fiduciary. These Managers have portfolio management discretion over the purchasing and selling ofsecurities and other investment assets pursuant to the respective investment management agreements and guidelines established for each insurance separateaccount. The assets of the qualified pension plans and postretirement medical plans (the “Invested Plans”) are well diversified across multiple asset categoriesand across a number of different Managers, with the intent of minimizing risk concentrations within any given asset category or with any of the given Managers.

The Invested Plans, other than those held in participant directed investment accounts, are managed in accordance with investment policies consistent withthe longer-term nature of related benefit obligations and within prudent risk parameters. Specifically, investment policies are oriented toward (i) maximizing theInvested Plan’s funded status; (ii) minimizing the volatility of the Invested Plan’s funded status; (iii) generating asset returns that exceed liability increases; and(iv) targeting rates of return in excess of a custom benchmark and industry standards over appropriate reference time periods. These goals are expected to be metthrough identifying appropriate and diversified asset classes and allocations, ensuring adequate liquidity to pay benefits and expenses when due and controllingthe costs of administering and managing the Invested Plan’s investments. Independent investment consultants are periodically used to evaluate the investmentrisk of the Invested Plan’s assets relative to liabilities, analyze the economic and portfolio impact of various asset allocations and management strategies andrecommend asset allocations.

Derivative contracts may be used to reduce investment risk, to manage duration and to replicate the risk/return profile of an asset or asset class. Derivativesmay not be used to leverage a portfolio in any manner, such as to magnify exposure to an asset, asset class, interest rates or any other financial variable.Derivatives are also prohibited for use in creating exposures to securities, currencies, indices or any other financial variable that is otherwise restricted.

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Notes to the Consolidated Financial Statements — (continued)

17. Employee Benefit Plans (continued)

The table below summarizes the actual weighted average allocation of the estimated fair value of total plan assets by asset class at December 31 for theyears indicated and the approved target allocation by major asset class at December 31, 2018 for the Invested Plans:

December 31,

2018 2017

U.S. Pension

Benefits

U.S. OtherPostretirement

Benefits (1) U.S. Pension

Benefits

U.S. OtherPostretirement

Benefits (1)

Target Actual

Allocation Target Actual

Allocation Actual

Allocation Actual

AllocationAsset Class Fixed maturity securities AFS 82% 82% 85% 82% 82% 84%Equity securities (2) 10% 10% 15% 18% 10% 15%Alternative securities (3) 8% 8% —% —% 8% 1%

Total assets 100% 100% 100% 100%__________________

(1) U.S. other postretirement benefits do not reflect postretirement life’s plan assets invested in fixed maturity securities AFS.

(2) Equity securities percentage includes derivative assets.

(3) Alternative securities primarily include hedge, private equity and real estate funds.

Estimated Fair Value

The pension and other postretirement benefit plan assets are categorized into a three-level fair value hierarchy, as described in Note 10 , based upon thesignificant input with the lowest level in its valuation. The Level 2 asset category includes certain separate accounts that are primarily invested in liquid andreadily marketable securities. The estimated fair value of such separate accounts is based upon reported NAV provided by fund managers and this valuerepresents the amount at which transfers into and out of the respective separate account are effected. These separate accounts provide reasonable levels of pricetransparency and can be corroborated through observable market data. Directly held investments are primarily invested in U.S. and foreign government andcorporate securities. The Level 3 asset category includes separate accounts that are invested in assets that provide little or no price transparency due to theinfrequency with which the underlying assets trade and generally require additional time to liquidate in an orderly manner. Accordingly, the values for separateaccounts invested in these alternative asset classes are based on inputs that cannot be readily derived from or corroborated by observable market data.

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Notes to the Consolidated Financial Statements — (continued)

17. Employee Benefit Plans (continued)

The pension and other postretirement plan assets measured at estimated fair value on a recurring basis and their corresponding placement in the fair valuehierarchy are summarized as follows:

December 31, 2018

Pension Benefits Other Postretirement Benefits

Fair Value Hierarchy Fair Value Hierarchy

Level 1 Level 2 Level 3

Total Estimated Fair Value Level 1 Level 2 Level 3

Total Estimated Fair Value

(In millions)Assets Fixed maturity securities AFS: Corporate $ — $ 3,350 $ 1 $ 3,351 $ — $ 313 $ — $ 313U.S. government bonds 1,314 471 — 1,785 268 — — 268Foreign bonds — 837 — 837 — 90 — 90Federal agencies — 88 — 88 — 16 — 16Municipals — 240 — 240 — 29 — 29Short-term investments 1 198 — 199 1 397 — 398Other (1) 210 590 1 801 3 69 — 72

Total fixed maturity securitiesAFS 1,525 5,774 2 7,301 272 914 — 1,186

Equity securities 706 195 — 901 155 18 — 173Other investments 20 — 688 708 — — — —Derivative assets 33 4 1 38 1 — — 1

Total assets $ 2,284 $ 5,973 $ 691 $ 8,948 $ 428 $ 932 $ — $ 1,360

December 31, 2017

Pension Benefits Other Postretirement Benefits

Fair Value Hierarchy Fair Value Hierarchy

Level 1 Level 2 Level 3

Total Estimated Fair Value Level 1 Level 2 Level 3

Total Estimated Fair Value

(In millions)Assets Fixed maturity securities AFS: Corporate $ — $ 3,833 $ 1 $ 3,834 $ 20 $ 362 $ — $ 382U.S. government bonds 1,256 528 — 1,784 269 6 — 275Foreign bonds — 1,037 — 1,037 — 102 — 102Federal agencies 35 134 — 169 — 17 — 17Municipals — 335 — 335 — 28 — 28Short-term investments 135 192 — 327 8 390 — 398Other (1) 7 388 10 405 — 68 — 68

Total fixed maturity securitiesAFS 1,433 6,447 11 7,891 297 973 — 1,270

Equity securities 797 177 3 977 154 — — 154Other investments 19 144 622 785 — 9 — 9Derivative assets 33 2 — 35 1 — — 1

Total assets $ 2,282 $ 6,770 $ 636 $ 9,688 $ 452 $ 982 $ — $ 1,434__________________

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Notes to the Consolidated Financial Statements — (continued)

17. Employee Benefit Plans (continued)

(1) Other primarily includes money market securities, mortgage-backed securities, collateralized mortgage obligations and ABS.

A rollforward of all pension and other postretirement benefit plan assets measured at estimated fair value on a recurring basis using significantunobservable (Level 3) inputs was as follows:

Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Pension Benefits

Fixed Maturity Securities AFS:

Corporate Other (1) Equity Securities Other

Investments Derivative

Assets (In millions)Balance, January 1, 2017 $ — $ 9 $ — $ 637 $ 65Realized gains (losses) (10) — 2 — (22)Unrealized gains (losses) 10 — — (12) 6Purchases, sales, issuances and settlements, net — 8 (4) — (48)Transfers into and/or out of Level 3 1 (7) 5 (3) (1)Balance, December 31, 2017 $ 1 $ 10 $ 3 $ 622 $ —Realized gains (losses) — — — — —Unrealized gains (losses) — — — 23 —Purchases, sales, issuances and settlements, net — (3) — 43 —Transfers into and/or out of Level 3 — (6) (3) — 1Balance, December 31, 2018 $ 1 $ 1 $ — $ 688 $ 1__________________

(1) Other includes ABS and collateralized mortgage obligations.

For the years ended December 31, 2018 and 2017 , there were no o ther postretirement benefit plan assets measured at estimated fair value on a recurringbasis using significant unobservable (Level 3) inputs.

ExpectedFutureContributionsandBenefitPayments

It is the subsidiaries’ practice to make contributions to the U.S. qualified pension plan to comply with minimum funding requirements of ERISA. Inaccordance with such practice, no contributions are required for 2019 . The subsidiaries expect to make discretionary contributions to the qualified pension planof $150 million in 2019 . For information on employer contributions, see “— Obligations and Funded Status.”

Benefit payments due under the U.S. nonqualified pension plans are primarily funded from the subsidiaries’ general assets as they become due under theprovisions of the plans, and therefore benefit payments equal employer contributions. The U.S. subsidiaries expect to make contributions of $70 million to fundthe benefit payments in 2019 .

Postretirement benefits are either: (i) not vested under law; (ii) a non-funded obligation of the subsidiaries; or (iii) both. Current regulations do not requirefunding for these benefits. The subsidiaries use their general assets, net of participant’s contributions, to pay postretirement medical claims as they come due. Aspermitted under the terms of the governing trust document, the subsidiaries may be reimbursed from plan assets for postretirement medical claims paid fromtheir general assets. The U.S. subsidiaries expect to make contributions of $50 million towards benefit obligations in 2019 to pay postretirement medical claims.

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Notes to the Consolidated Financial Statements — (continued)

17. Employee Benefit Plans (continued)

Gross benefit payments for the next 10 years, which reflect expected future service where appropriate, are expected to be as follows:

Pension Benefits Other Postretirement Benefits (In millions)2019 $ 620 $ 852020 $ 636 $ 832021 $ 643 $ 812022 $ 661 $ 822023 $ 682 $ 842024-2028 $ 3,596 $ 413

AdditionalInformation

As previously discussed, most of the assets of the U.S. pension benefit plans are held in group annuity contracts issued by the subsidiaries while some of theassets of the U.S. postretirement benefit plans are held in a trust which largely utilizes life insurance contracts issued by the subsidiaries to hold such assets. Totalrevenues from these contracts recognized on the consolidated statements of operations were $56 million , $56 million and $58 million for the years endedDecember 31, 2018 , 2017 and 2016 , respectively, and included policy charges and net investment income from investments backing the contracts andadministrative fees. Total investment income (loss), including realized and unrealized gains (losses), credited (debited) to the account balances was($448) million , $1.1 billion and $660 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The terms of these contracts are consistentin all material respects with those the subsidiaries offer to unaffiliated parties that are similarly situated.

DefinedContributionPlans

Certain subsidiaries sponsor defined contribution plans under which a portion of employee contributions are matched. These subsidiaries contributed$63 million , $72 million and $81 million for the years ended December 31, 2018 , 2017 and 2016 , respectively.

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Notes to the Consolidated Financial Statements — (continued)

18. Income Tax

The provision for income tax from continuing operations was as follows:

Years Ended December 31,

2018 2017 2016

(In millions)

Current: U.S. federal $ (207) $ (246) $ 520U.S. state and local 11 5 3Non-U.S. 932 891 628

Subtotal 736 650 1,151Deferred: U.S. federal 342 (2,373) (827)Non-U.S. 101 253 369

Subtotal 443 (2,120) (458)Provision for income tax expense (benefit) $ 1,179 $ (1,470) $ 693

The Company’s income (loss) from continuing operations before income tax expense (benefit) was as follows:

Years Ended December 31,

2018 2017 2016

(In millions)

Income (loss) from continuing operations: U.S. $ (803) $ 684 $ 185Non-U.S. 7,110 2,852 4,096

Total $ 6,307 $ 3,536 $ 4,281

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Notes to the Consolidated Financial Statements — (continued)

18. Income Tax (continued)

The reconciliation of the income tax provision at the U.S. statutory rate (21% in 2018; 35% in 2017 and 2016) to the provision for income tax as reported forcontinuing operations was as follows:

Years Ended December 31,

2018 2017 2016

(In millions)

Tax provision at U.S. statutory rate $ 1,325 $ 1,238 $ 1,498Tax effect of: Dividend received deduction (35) (67) (69)Tax-exempt income (29) (97) (86)Prior year tax (1) (197) (27) (13)Low income housing tax credits (284) (278) (270)Other tax credits (79) (102) (98)Foreign tax rate differential (2), (3), (4) 335 (95) (332)Change in valuation allowance (2) (8) (9)Separation tax benefits — (540) —U.S. Tax Reform impact (5), (6) 78 (1,519) —Other, net (7) 67 25 72

Provision for income tax expense (benefit) $ 1,179 $ (1,470) $ 693__________________

(1) As discussed further below, for the year ended December 31, 2018 , prior year tax includes a $168 million non-cash benefit related to an uncertain taxposition.

(2) For the year ended December 31, 2018 , foreign tax rate differential includes tax charges of $45 million related to Global Intangible Low-Taxed Income(“GILTI”), $17 million related to a tax adjustment in Chile and $13 million from changes in the valuation of the peso in Argentina.

(3) For the year ended December 31, 2017, foreign tax rate differential includes a net tax charge of $180 million as a result of repatriation. Included in the nettax charge of $180 million is a $444 million tax charge related to the repatriation of approximately $3.0 billion of pre-2017 earnings following the post-Separation review of the Company’s capital needs. This charge was partially offset by a $264 million tax benefit associated with dividends from other non-U.S. operations. This charge was recorded prior to U.S. Tax Reform and is incremental to the $170 million repatriation transition tax recorded for the yearended December 31, 2017.

(4) For the year ended December 31, 2016, foreign tax rate differential includes a tax benefit of $110 million in Japan related to a change in tax rate, offset by atax charge of $19 million in Chile related to a change in tax rate.

(5) For the year ended December 31, 2018 , U.S. Tax Reform impact includes a $468 million tax charge related to the deemed repatriation transition tax, offsetby a $390 million tax benefit related to the adjustment of deferred taxes due to the U.S. tax rate change. This excludes $12 million of tax provision at theU.S. statutory rate for a total tax reform charge of $66 million .

(6) For the year ended December 31, 2017, U.S. Tax Reform impact of ($1.5) billion excludes ($101) million of tax provision at the U.S. statutory rate for atotal tax reform benefit of ($1.6) billion .

(7) For the year ended December 31, 2018 , other includes tax charges of $69 million related to the non-deductible loss incurred on the mark-to-market andexchange of FVO Brighthouse Common Stock and $18 million related to a non-deductible Patient Protection and Affordable Care Act excise tax, offset by atax benefit of $36 million related to a non-cash transfer of assets from a wholly-owned U.K. subsidiary to its U.S. parent.

On December 22, 2017, President Trump signed into law U.S. Tax Reform. U.S. Tax Reform includes numerous changes in tax law, including a permanentreduction in the U.S. federal corporate income tax rate from 35% to 21% , which took effect for taxable years beginning on or after January 1, 2018. U.S. TaxReform moves the United States from a worldwide tax system

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Notes to the Consolidated Financial Statements — (continued)

18. Income Tax (continued)

to a participation exemption system by providing corporations a 100% dividends received deduction for dividends distributed by a controlled foreign corporation.To transition to that new system, U.S. Tax Reform imposed a one-time deemed repatriation tax on unremitted earnings and profits at a rate of 8.0% for illiquidassets and 15.5% for cash and cash equivalents.

The incremental financial statement impact related to U.S. Tax Reform was as follows:

Years Ended December 31,

2018 2017

(In millions)

Income (loss) from continuing operations before provision for income tax $ (58) $ (289)Provision for income tax expense (benefit): Deemed repatriation 468 170Deferred tax revaluation (402) (1,790)

Total provision for income tax expense (benefit) 66 (1,620)Income (loss) from continuing operations, net of income tax (124) 1,331Income tax (expense) benefit related to items of other comprehensive income (loss) — 144

Increase to net equity from U.S. Tax Reform $ (124) $ 1,475

In accordance with SAB 118 issued by the SEC in December 2017, the Company recorded provisional amounts for certain items for which the income taxaccounting is not complete. For these items, the Company recorded a reasonable estimate of the tax effects of U.S. Tax Reform. The estimates were reported asprovisional amounts during the measurement period, which did not exceed one year from the date of enactment of U.S. Tax Reform. The Company reflectedadjustments to its provisional amounts upon obtaining, preparing, or analyzing additional information about facts and circumstances that existed as of theenactment date that, if known, would have affected the income tax effects initially reported as provisional amounts.

As of December 31, 2017, the following items were considered provisional estimates due to complexities and ambiguities in U.S. Tax Reform which resultedin incomplete accounting for the tax effects of these provisions. Further guidance, either legislative or interpretive, and analysis were completed during themeasurement period. As a result, the following updates were made to complete the accounting for these items as of December 31, 2018:

• Deemed Repatriation Transition Tax - The Company recorded a $170 million charge for this item for the year ended December 31, 2017. This charge wasin addition to the $180 million charge recorded in the third quarter of 2017 resulting from the post-Separation review of the Company’s capital needs. Thetotal transition tax liability recorded for the year ended December 31, 2017 was $350 million . In 2018, the IRS issued proposed regulations related to thetransition tax. As a result, for the year ended December 31, 2018 , the Company recorded a $468 million charge.

• GILTI - U.S. Tax Reform imposes a minimum tax on GILTI, which is generally the excess income of foreign subsidiaries over a 10% rate of routinereturn on tangible business assets. For the year ended December 31, 2017, the Company did not record a tax charge for this item. In 2018, the Companyestablished an accounting policy in which it treats taxes due on GILTI as a current-period expense when incurred. Accordingly, for the year endedDecember 31, 2018 , the Company recorded a $45 million tax charge related to this income.

• Compensation and Fringe Benefits - U.S. Tax Reform limits certain employer deductions for fringe benefit and related expenses and also repeals theexception allowing the deduction of certain performance-based compensation paid to certain senior executives. The Company recorded an $8 million taxcharge, included within the deferred tax revaluation as of December 31, 2017. The Company determined that no additional adjustment was required forthe year ended December 31, 2018 .

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Notes to the Consolidated Financial Statements — (continued)

18. Income Tax (continued)

• Alternative Minimum Tax Credits - U.S. Tax Reform eliminates the corporate alternative minimum tax and allows for minimum tax credit carryforwardsto be used to offset future regular tax or to be refunded 50% each tax year beginning in 2018, with any remaining balance fully refunded in 2021.However, pursuant to the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, refund payments issued forcorporations claiming refundable prior year alternative minimum tax credits are subject to a sequestration rate of 6.2% . The application of this fee torefunds in future years is subject to further guidance. Additionally, the sequestration reduction rate in effect at the time is subject to uncertainty. For theyear ended December 31, 2017, the Company recorded a $9 million tax charge, included within the deferred tax revaluation. For the year endedDecember 31, 2018 , the Company determined that no additional adjustment was required. In early 2019, the IRS issued guidance indicating that for yearsbeginning after December 31, 2017, refund payments and credit elect and refund offset transactions due to refundable minimum tax credits will not besubject to sequestration. The Company will incorporate the impacts of this IRS announcement in 2019.

• Tax Credit Partnerships - The reduction in the federal corporate income tax rate due to U.S. Tax Reform required adjustments for multiple investmentportfolios, including tax credit partnerships and tax-advantaged leverage leases. Certain tax credit partnership investments derive returns in part fromincome tax credits. The Company recognizes changes in tax attributes at the partnership level when reported by the investee in its financialinformation. The Company did not receive the necessary investee financial information to determine the impact of U.S. Tax Reform on the tax attributesof its tax credit partnership investments until the third quarter of 2018. Accordingly, prior to the third quarter of 2018, the Company applied prior law tothese equity method investments in accordance with SAB 118. For the year ended December 31, 2018 , after receiving additional investee information, areduction in tax credit partnerships’ equity method income of $46 million , net of income tax, was included in net investment income. The tax-advantagedleveraged lease portfolio is valued on an after-tax yield-basis. In 2018, the Company received third party data that was used to complete a comprehensivereview of its portfolio to determine the full and complete impact of U.S. Tax Reform on these investments. As a result of this review, a tax benefit of$125 million was recorded for the year ended December 31, 2018 .

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Notes to the Consolidated Financial Statements — (continued)

18. Income Tax (continued)

U.S. Tax Reform required the Company to recognize a transition tax on all previously unremitted non-U.S. earnings at December 31, 2017. However, theCompany has not provided for U.S. deferred taxes on the remaining excess of book bases over tax bases of certain investments in non-U.S. subsidiaries that areessentially permanent in duration. The amount of deferred tax liability related to the Company’s remaining basis difference in these non-U.S. subsidiaries is $181million at December 31, 2018 .

Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets andliabilities consisted of the following at:

December 31,

2018 2017

(In millions)

Deferred income tax assets: Policyholder liabilities and receivables $ 2,887 $ 2,654Net operating loss carryforwards 104 512Employee benefits 705 802Capital loss carryforwards — 6Tax credit carryforwards 1,113 1,322Litigation-related and government mandated 161 160Other 191 657

Total gross deferred income tax assets 5,161 6,113Less: Valuation allowance 169 189

Total net deferred income tax assets 4,992 5,924Deferred income tax liabilities: Investments, including derivatives 2,494 2,772Intangibles 1,256 1,321Net unrealized investment gains 2,898 4,783DAC 3,263 3,206Other 495 609

Total deferred income tax liabilities 10,406 12,691Net deferred income tax asset (liability) $ (5,414) $ (6,767)

The Company also has recorded a valuation allowance benefit of $12 million related to certain U.S. state and non-U.S. net operating loss carryforwards for theyear ended December 31, 2018 . In addition, an $8 million decrease was related to foreign currency exchange rate movement for the year ended December 31,2018 . The valuation allowance reflects management’s assessment, based on available information, that it is more likely than not that the deferred income tax assetfor certain U.S. state and non-U.S. net operating loss carryforwards will not be realized. The tax benefit will be recognized when management believes that it ismore likely than not that these deferred income tax assets are realizable.

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Notes to the Consolidated Financial Statements — (continued)

18. Income Tax (continued)

The following table sets forth the net operating loss carryforwards for tax return purposes at December 31, 2018 .

Net Operating Loss Carryforwards

U.S. Federal U.S. State Non-U.S.

(In millions)

Expiration: 2019-2023 $ 1 $ — $ 672024-2028 — — 182029-2033 6 — —2034-2038 — 140 —Indefinite — — 416

$ 7 $ 140 $ 501

The following table sets forth the general business credits, foreign tax credits, and other credit carryforwards for tax return purposes at December 31, 2018 .

Tax Credit Carryforwards

General Business

Credits Foreign Tax

Credits Other

(In millions)

Expiration: 2019-2023 $ — $ — $ —2024-2028 — 2 —2029-2033 203 — —2034-2038 1,140 — —Indefinite — 23 145

$ 1,343 $ 25 $ 145

The Company files income tax returns with the U.S. federal government and various U.S. state and local jurisdictions, as well as non-U.S. jurisdictions. TheCompany is under continuous examination by the IRS and other tax authorities in jurisdictions in which the Company has significant business operations. Theincome tax years under examination vary by jurisdiction and subsidiary. The Company is no longer subject to U.S. federal, state, or local income tax examinationsfor years prior to 2007, except for refund claims filed in 2017 with the IRS for 2000 through 2002 to recover tax and interest predominantly related to thedisallowance of certain foreign tax credits for which the Company received a statutory notice of deficiency in 2015 and paid the tax thereon. The disallowedforeign tax credits relate to certain non-U.S. investments held by MLIC in support of its life insurance business through a United Kingdom investment subsidiarythat was structured as a joint venture until early 2009.

For tax years 2003 through 2006, the Company entered into binding agreements with the IRS under which all remaining issues, including the foreign tax creditmatter noted above, for these years were resolved. Accordingly, in the fourth quarter of 2018, the Company recorded a non-cash benefit to net income of $349million , net of tax, comprised of a $168 million tax benefit recorded in provision for income tax expense (benefit) and a $229 million interest benefit ( $181million , net of tax) included in other expenses. For tax years 2000 through 2002 (which are closed to IRS examination except for the refund claim describedabove) and 2007 through 2009 (which are the subject of the current IRS examination), the Company has established adequate reserves for tax liabilities. TheCompany continues to pursue final resolution of disallowed foreign tax credits, as well as related issues, for the open tax years in a manner consistent with the finalresolution of such issues for 2003 through 2006. Although the final timing and details of any such resolution remain uncertain, and could be affected by manyfactors, closure with the IRS for tax years 2000 through 2002, and 2007 through 2009, may occur in 2019. In material non-U.S. jurisdictions, the Company is nolonger subject to income tax examinations for years prior to 2011.

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Notes to the Consolidated Financial Statements — (continued)

18. Income Tax (continued)

The Company’s overall liability for unrecognized tax benefits may increase or decrease in the next 12 months. For example, federal tax legislation andregulation could impact unrecognized tax benefits. A reasonable estimate of the increase or decrease cannot be made at this time. However, the Company continuesto believe that the ultimate resolution of the pending issues will not result in a material change to its consolidated financial statements, although the resolution ofincome tax matters could impact the Company’s effective tax rate for a particular future period.

A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:

Years Ended December 31,

2018 2017 2016

(In millions)

Balance at January 1, $ 1,102 $ 1,146 $ 1,259Additions for tax positions of prior years (1) 269 70 24Reductions for tax positions of prior years (2) (195) (101) (112)Additions for tax positions of current year (1) 226 33 23Reductions for tax positions of current year (3) (3) —Settlements with tax authorities (3) (288) (43) (48)Balance at December 31, $ 1,111 $ 1,102 $ 1,146Unrecognized tax benefits that, if recognized, would impact the effective rate $ 1,046 $ 1,073 $ 1,112__________________

(1) The increase in 2018 is primarily related to the deemed repatriation transition tax and the IRS issued proposed regulations.

(2) The decrease in 2018 is primarily related to the non-cash benefit from the tax audit settlement discussed above.

(3) The decrease in 2018 is primarily related to the tax audit settlement, of which $284 million was reclassified to the current income tax payable account.

The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses, while penalties are includedin income tax expense.

Interest was as follows:

Years Ended December 31,

2018 2017 2016

(In millions)

Interest expense (benefit) recognized on the consolidated statements of operations (1) $ (441) $ 37 $ (41) December 31,

2018 2017

(In millions)

Interest included in other liabilities on the consolidated balance sheets $ 218 $ 659__________________

(1) The decrease in 2018 is primarily related to the tax audit settlement, of which $168 million was recorded in other expenses and $273 million was reclassifiedto the current income tax payable account.

The Company had insignificant penalties for the years ended December 31, 2018 , 2017 and 2016 .

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Notes to the Consolidated Financial Statements — (continued)

19. Earnings Per Common Share

The following table presents the weighted average shares, basic earnings per common share and diluted earnings per common share for each income categorypresented:

Years Ended December 31,

2018 2017 2016

(In millions, except per share data)

Weighted Average Shares: Weighted average common stock outstanding for basic earnings per common share 1,005.9 1,069.7 1,100.5Incremental common shares from assumed exercise or issuance of stock-based awards 8.0 8.8 8.0

Weighted average common stock outstanding for diluted earnings per common share 1,013.9 1,078.5 1,108.5Income (Loss) from Continuing Operations: Income (loss) from continuing operations, net of income tax $ 5,128 $ 5,006 $ 3,588Less: Income (loss) from continuing operations, net of income tax, attributable to

noncontrolling interests 5 10 4Less: Preferred stock dividends 141 103 103

Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’scommon shareholders $ 4,982 $ 4,893 $ 3,481

Basic $ 4.95 $ 4.57 $ 3.16Diluted $ 4.91 $ 4.53 $ 3.13

Income (Loss) from Discontinued Operations: Income (loss) from discontinued operations, net of income tax $ — $ (986) $ (2,734)Less: Income (loss) from discontinued operations, net of income tax, attributable to

noncontrolling interests — — —Income (loss) from discontinued operations, net of income tax, available to MetLife,

Inc.’s common shareholders $ — $ (986) $ (2,734)Basic $ — $ (0.92) $ (2.48)Diluted $ — $ (0.91) $ (2.46)

Net Income (Loss): Net income (loss) $ 5,128 $ 4,020 $ 854Less: Net income (loss) attributable to noncontrolling interests 5 10 4Less: Preferred stock dividends 141 103 103

Net income (loss) available to MetLife, Inc.’s common shareholders $ 4,982 $ 3,907 $ 747Basic $ 4.95 $ 3.65 $ 0.68Diluted $ 4.91 $ 3.62 $ 0.67

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Notes to the Consolidated Financial Statements — (continued)

20. Contingencies, Commitments and Guarantees

Contingencies

Litigation

The Company is a defendant in a large number of litigation matters. Putative or certified class action litigation and other litigation and claims andassessments against the Company, in addition to those discussed below and those otherwise provided for in the Company’s consolidated financial statements,have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, mortgage lending bank,employer, investor, investment advisor, broker-dealer, and taxpayer.

The Company also receives and responds to subpoenas or other inquiries seeking a broad range of information from state regulators, including stateinsurance commissioners; state attorneys general or other state governmental authorities; federal regulators, including the SEC; federal governmental authorities,including congressional committees; and the Financial Industry Regulatory Authority, as well as from local and national regulators and government authorities injurisdictions outside the United States where the Company conducts business. The issues involved in information requests and regulatory matters vary widely,but can include inquiries or investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. The Companycooperates in these inquiries.

In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S.permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damagessought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permitplaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings,together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstratesto management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.

It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. The Company establishes liabilities for litigation andregulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have beenestablished for a number of the matters noted below. It is possible that some of the matters could require the Company to pay damages or make otherexpenditures or establish accruals in amounts that could not be reasonably estimated at December 31, 2018. While the potential future charges could be materialin the particular quarterly or annual periods in which they are recorded, based on information currently known to management, management does not believe anysuch charges are likely to have a material effect on the Company’s financial position. Given the large and/or indeterminate amounts sought in certain of thesematters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect onthe Company’s consolidated net income or cash flows in particular quarterly or annual periods.

MattersastoWhichanEstimateCanBeMade

For some of the matters disclosed below, the Company is able to estimate a reasonably possible range of loss. For matters where a loss is believed to bereasonably possible, but not probable, the Company has not made an accrual. As of December 31, 2018 , the Company estimates the aggregate range ofreasonably possible losses in excess of amounts accrued for these matters to be $0 to $550 million .

MattersastoWhichanEstimateCannotBeMade

For other matters disclosed below, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unableto estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range ofpossible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by thecourt on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevantinformation with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based onsuch reviews.

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Notes to the Consolidated Financial Statements — (continued)

20. Contingencies, Commitments and Guarantees (continued)

Asbestos-RelatedClaims

MLIC is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege that the plaintiff orplaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. MLIC has never engaged in the business ofmanufacturing, producing, distributing or selling asbestos or asbestos-containing products nor has MLIC issued liability or workers’ compensation insurance tocompanies in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products. The lawsuits principally have focused onallegations with respect to certain research, publication and other activities of one or more of MLIC’s employees during the period from the 1920’s throughapproximately the 1950’s and allege that MLIC learned or should have learned of certain health risks posed by asbestos and, among other things, improperlypublicized or failed to disclose those health risks. MLIC believes that it should not have legal liability in these cases. The outcome of most asbestos litigationmatters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the nature of the allegedinjury and factors unrelated to the ultimate legal merit of the claims asserted against MLIC. MLIC employs a number of resolution strategies to manage itsasbestos loss exposure, including seeking resolution of pending litigation by judicial rulings and settling individual or groups of claims or lawsuits underappropriate circumstances.

Claims asserted against MLIC have included negligence, intentional tort and conspiracy concerning the health risks associated with asbestos. MLIC’sdefenses (beyond denial of certain factual allegations) include that: (i) MLIC owed no duty to the plaintiffs — it had no special relationship with the plaintiffsand did not manufacture, produce, distribute or sell the asbestos products that allegedly injured plaintiffs; (ii) plaintiffs did not rely on any actions of MLIC;(iii) MLIC’s conduct was not the cause of the plaintiffs’ injuries; (iv) plaintiffs’ exposure occurred after the dangers of asbestos were known; and (v) theapplicable time with respect to filing suit has expired. During the course of the litigation, certain trial courts have granted motions dismissing claims againstMLIC, while other trial courts have denied MLIC’s motions. There can be no assurance that MLIC will receive favorable decisions on motions in the future.While most cases brought to date have settled, MLIC intends to continue to defend aggressively against claims based on asbestos exposure, including defendingclaims at trials.

The approximate total number of asbestos personal injury claims pending against MLIC as of the dates indicated, the approximate number of new claimsduring the years ended on those dates and the approximate total settlement payments made to resolve asbestos personal injury claims at or during those years areset forth in the following table:

December 31,

2018 2017 2016

(In millions, except number of claims)

Asbestos personal injury claims at year end 62,522 62,930 67,223Number of new claims during the year 3,359 3,514 4,146Settlement payments during the year (1) $ 51.4 $ 48.6 $ 50.2__________________

(1) Settlement payments represent payments made by MLIC during the year in connection with settlements made in that year and in prior years. Amounts donot include MLIC’s attorneys’ fees and expenses.

The number of asbestos cases that may be brought, the aggregate amount of any liability that MLIC may incur, and the total amount paid in settlements inany given year are uncertain and may vary significantly from year to year.

The ability of MLIC to estimate its ultimate asbestos exposure is subject to considerable uncertainty, and the conditions impacting its liability can bedynamic and subject to change. The availability of reliable data is limited and it is difficult to predict the numerous variables that can affect liability estimates,including the number of future claims, the cost to resolve claims, the disease mix and severity of disease in pending and future claims, the impact of the numberof new claims filed in a particular jurisdiction and variations in the law in the jurisdictions in which claims are filed, the possible impact of tort reform efforts,the willingness of courts to allow plaintiffs to pursue claims against MLIC when exposure to asbestos took place after the dangers of asbestos exposure were wellknown, and the impact of any possible future adverse verdicts and their amounts.

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Notes to the Consolidated Financial Statements — (continued)

20. Contingencies, Commitments and Guarantees (continued)

The ability to make estimates regarding ultimate asbestos exposure declines significantly as the estimates relate to years further in the future. In theCompany’s judgment, there is a future point after which losses cease to be probable and reasonably estimable. It is reasonably possible that the Company’s totalexposure to asbestos claims may be materially greater than the asbestos liability currently accrued and that future charges to income may be necessary. While thepotential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known bymanagement, management does not believe any such charges are likely to have a material effect on the Company’s financial position.

The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses forasbestos-related claims. MLIC’s recorded asbestos liability is based on its estimation of the following elements, as informed by the facts presently known to it,its understanding of current law and its past experiences: (i) the probable and reasonably estimable liability for asbestos claims already asserted against MLIC,including claims settled but not yet paid; (ii) the probable and reasonably estimable liability for asbestos claims not yet asserted against MLIC, but which MLICbelieves are reasonably probable of assertion; and (iii) the legal defense costs associated with the foregoing claims. Significant assumptions underlying MLIC’sanalysis of the adequacy of its recorded liability with respect to asbestos litigation include: (i) the number of future claims; (ii) the cost to resolve claims; and(iii) the cost to defend claims.

MLIC reevaluates on a quarterly and annual basis its exposure from asbestos litigation, including studying its claims experience, reviewing externalliterature regarding asbestos claims experience in the United States, assessing relevant trends impacting asbestos liability and considering numerous variablesthat can affect its asbestos liability exposure on an overall or per claim basis. These variables include bankruptcies of other companies involved in asbestoslitigation, legislative and judicial developments, the number of pending claims involving serious disease, the number of new claims filed against it and otherdefendants and the jurisdictions in which claims are pending. Based upon its regular reevaluation of its exposure from asbestos litigation, MLIC has updated itsrecorded liability for asbestos-related claims to $502 million at December 31, 2018.

IntheMatterofChemform,Inc.Site,PompanoBeach,BrowardCounty,Florida

In July 2010, the Environmental Protection Agency (“EPA”) advised MLIC that it believed payments were due under two settlement agreements, known as“Administrative Orders on Consent,” that New England Mutual Life Insurance Company (“New England Mutual”) signed in 1989 and 1992 with respect to thecleanup of a Superfund site in Florida (the “Chemform Site”). The EPA originally contacted MLIC (as successor to New England Mutual) and a third party in2001, and advised that they owed additional clean-up costs for the Chemform Site. The matter was not resolved at that time. In September 2012, the EPA, MLICand the third party executed an Administrative Order on Consent under which MLIC and the third party agreed to be responsible for certain environmentaltesting at the Chemform Site. The EPA may seek additional costs if the environmental testing identifies issues. The EPA and MLIC have reached a settlement inprinciple on the EPA’s claim for past costs. The Company estimates that the aggregate cost to resolve this matter, including the settlement for claims of pastcosts and the costs of environmental testing, will not exceed $300 thousand .

SunLifeAssuranceCompanyofCanadaIndemnityClaim

In 2006, Sun Life Assurance Company of Canada (“Sun Life”), as successor to the purchaser of MLIC’s Canadian operations, filed a lawsuit in Toronto,seeking a declaration that MLIC remains liable for “market conduct claims” related to certain individual life insurance policies sold by MLIC that weresubsequently transferred to Sun Life. In January 2010, the court found that Sun Life had given timely notice of its claim for indemnification but, because it foundthat Sun Life had not yet incurred an indemnifiable loss, granted MLIC’s motion for summary judgment. In September 2010, Sun Life notified MLIC that apurported class action lawsuit was filed against Sun Life in Toronto alleging sales practices claims regarding the policies sold by MLIC and transferred to SunLife (the “Ontario Litigation”). On August 30, 2011, Sun Life notified MLIC that another purported class action lawsuit was filed against Sun Life in Vancouver,BC alleging sales practices claims regarding certain of the same policies sold by MLIC and transferred to Sun Life. Sun Life contends that MLIC is obligated toindemnify Sun Life for some or all of the claims in these lawsuits. In September 2018, the Court of Appeal for Ontario affirmed the lower court’s decision to notcertify the sales practices claims in the Ontario Litigation. These sales practices cases against Sun Life are ongoing, and the Company is unable to estimate thereasonably possible loss or range of loss arising from this litigation.

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Notes to the Consolidated Financial Statements — (continued)

20. Contingencies, Commitments and Guarantees (continued)

CityofWestlandPoliceandFireRetirementSystemv.MetLife,Inc.,et.al.(S.D.N.Y.,filedJanuary12,2012)

Plaintiff filed this class action on behalf of a class of persons who either purchased MetLife, Inc. common shares between February 9, 2011, and October 6,2011, or purchased or acquired MetLife, Inc. common stock in the Company’s August 3, 2010 offering or the Company’s March 4, 2011 offering. Plaintiffalleges that MetLife, Inc. and several current and former directors and executive officers of MetLife, Inc. violated the Securities Act of 1933, as well as theExchange Act and Rule 10b-5 promulgated thereunder by issuing, or causing MetLife, Inc. to issue, materially false and misleading statements concerningMetLife, Inc.’s potential liability for millions of dollars in insurance benefits that should have purportedly been paid to beneficiaries or escheated to the states.Plaintiff seeks unspecified compensatory damages and other relief. The defendants intend to defend this action vigorously.

Owensv.MetropolitanLifeInsuranceCompany(N.D.Ga.,filedApril17,2014)

Plaintiff filed this class action lawsuit on behalf of persons for whom MLIC established a Total Control Account (“TCA”) to pay death benefits under anERISA plan. The action alleges that MLIC’s use of the TCA as the settlement option for life insurance benefits under some group life insurance policies violatesMLIC’s fiduciary duties under ERISA. As damages, plaintiff seeks disgorgement of profits that MLIC realized on accounts owned by members of the class. Inaddition, plaintiff, on behalf of a subgroup of the class, seeks interest under Georgia’s delayed settlement interest statute, alleging that the use of the TCA as thesettlement option did not constitute payment. On September 27, 2016, the court denied MLIC’s summary judgment motion in full and granted plaintiff’s partialsummary judgment motion. On September 29, 2017, the court certified a nationwide class. The court also certified a Georgia subclass. The Company intends todefend this action vigorously.

Voshallv.MetropolitanLifeInsuranceCompany(SuperiorCourtoftheStateofCalifornia,CountyofLosAngeles,April8,2015)

Plaintiff filed this putative class action lawsuit on behalf of himself and all persons covered under a long-term group disability income insurance policyissued by MLIC to public entities in California between April 8, 2011 and April 8, 2015. Plaintiff alleges that MLIC improperly reduced benefits by includingcost of living adjustments and employee paid contributions in the employer retirement benefits and other income that reduces the benefit payable under suchpolicies. Plaintiff asserts causes of action for declaratory relief, violation of the California Business & Professions Code, breach of contract and breach of theimplied covenant of good faith and fair dealing. The parties reached a settlement, which the court approved on January 3, 2019.

Martinv.MetropolitanLifeInsuranceCompany,(SuperiorCourtoftheStateofCalifornia,CountyofContraCosta,filedDecember17,2015)

Plaintiffs filed this putative class action lawsuit on behalf of themselves and all California persons who have been charged compound interest by MLIC inlife insurance policy and/or premium loan balances within the last four years. Plaintiffs allege that MLIC has engaged in a pattern and practice of chargingcompound interest on life insurance policy and premium loans without the borrower authorizing such compounding, and that this constitutes an unlawfulbusiness practice under California law. Plaintiffs assert causes of action for declaratory relief, violation of California’s Unfair Competition Law and Usury Law,and unjust enrichment. Plaintiffs seek declaratory and injunctive relief, restitution of interest, and damages in an unspecified amount. On April 12, 2016, thecourt granted MLIC’s motion to dismiss. Plaintiffs appealed this ruling to the United States Court of Appeals for the Ninth Circuit. The Company intends todefend this action vigorously.

Newmanv.MetropolitanLifeInsuranceCompany(N.D.Ill.,filedMarch23,2016)

Plaintiff filed this putative class action alleging causes of action for breach of contract, fraud, and violations of the Illinois Consumer Fraud and DeceptiveBusiness Practices Act, on behalf of herself and all persons over age 65 who selected a Reduced Pay at Age 65 payment feature on their long-term care insurancepolicies and whose premium rates were increased after age 65. Plaintiff seeks unspecified compensatory, statutory and punitive damages, as well as recessionaryand injunctive relief. On April 12, 2017, the court granted MLIC’s motion to dismiss the action. Plaintiff appealed this ruling and the United States Court ofAppeals for the Seventh Circuit reversed and remanded the case to the district court for further proceedings. The Company intends to defend this actionvigorously.

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Notes to the Consolidated Financial Statements — (continued)

20. Contingencies, Commitments and Guarantees (continued)

Julian&McKinneyv.MetropolitanLifeInsuranceCompany(S.D.N.Y.,filedFebruary9,2017)

Plaintiffs filed this putative class and collective action on behalf of themselves and all current and former long-term disability (“LTD”) claims specialistsbetween February 2011 and the present for alleged wage and hour violations under the Fair Labor Standards Act, the New York Labor Law, and the ConnecticutMinimum Wage Act. The suit alleges that MetLife improperly reclassified the plaintiffs and similarly situated LTD claims specialists from non-exempt toexempt from overtime pay in November 2013. As a result, they and members of the putative class were no longer eligible for overtime pay even though theyallege they continued to work more than 40 hours per week. Plaintiffs seek unspecified compensatory and punitive damages, as well as other relief. On March22, 2018, the Court conditionally certified the case as a collective action, requiring that notice be mailed to LTD claims specialists who worked for the Companyfrom February 8, 2014 to the present. The Company intends to defend this action vigorously.

TotalAssetRecoveryServices,LLC.v.MetLife,Inc.,etal.(SupremeCourtoftheStateofNewYork,CountyofNewYork,filedDecember27,2017)

Total Asset Recovery Services (“The Relator”) brought an action under the qui tam provision of the New York False Claims Act (the “Act”) on behalf ofitself and the State of New York. The Relator originally filed this action under seal in 2010, and the complaint was unsealed on December 19, 2017. The Relatoralleges that MetLife, Inc., MLIC, and several other insurance companies violated the Act by filing false unclaimed property reports with the State of New Yorkfrom 1986 to 2017, to avoid having to escheat the proceeds of more than 25,000 life insurance policies, including policies for which the defendants escheatedfunds as part of their demutualizations in the late 1990s. The Relator seeks treble damages and other relief. The Company intends to defend this actionvigorously.

RegulatoryandLitigationMattersRelatedtoGroupAnnuityBenefits

In 2018, the Company announced that it identified a material weakness in its internal control over financial reporting related to the practices and proceduresfor estimating reserves for certain group annuity benefits. The Company is exposed to lawsuits and regulatory investigations, and could be exposed to additionallegal actions relating to these issues. These may result in payments, including damages, fines, penalties, interest and other amounts assessed or awarded by courtsor regulatory authorities under applicable escheat, tax, securities, ERISA, or other laws or regulations. The Company could incur significant costs in connectionwith these actions.

Regulatory Matters

The New York Department of Financial Services examined these issues and other unrelated issues as part of its quinquennial exam and entered into aconsent order with MLIC on January 28, 2019. The Division of Enforcement of the SEC is also investigating this issue and several additional regulators havemade similar inquiries. It is possible that other jurisdictions may pursue similar investigations or inquiries.

In the Matter of MetLife, Inc. (Mass. Sec. Div., filed June 25, 2018)

The Enforcement Section of the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth (the “MSD”) filed anadministrative complaint in order to commence an adjudicatory proceeding against the Company for alleged violations of Section 101 of the MassachusettsUniform Securities Act and regulations promulgated thereunder, alleging that the Company made materially misleading statements regarding the sufficiencyof its reserves related to group annuity contracts and the effectiveness of its internal control over financial reporting. The Company settled this matter withthe MSD on December 18, 2018.

Litigation Matters

Parchmann v. MetLife, Inc., et. al. (E.D.N.Y., filed February 5, 2018)

Plaintiff filed this putative class action seeking to represent a class of persons who purchased MetLife, Inc. common stock from February 27, 2013through January 29, 2018. Plaintiff alleges that MetLife, Inc., its Chief Executive Officer and Chairman of the Board, and its Chief Financial Officerviolated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder by issuing materially false and/or misleading financial statements.Plaintiff alleges that MetLife’s practices and procedures for estimating reserves for certain group annuity benefits were inadequate, and that MetLife hadinadequate internal control over financial reporting. Plaintiff seeks unspecified compensatory damages and other relief. Defendants intend to defend thisaction vigorously.

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Notes to the Consolidated Financial Statements — (continued)

20. Contingencies, Commitments and Guarantees (continued)

Roycroft v. MetLife, Inc., et al. (S.D.N.Y., filed June 18, 2018)

Plaintiff filed this putative class action on behalf of all persons due benefits under group annuity contracts but who did not receive the entire amount towhich they were entitled. Plaintiff asserts claims for unjust enrichment, accounting, and restitution based on allegations that the Company failed to timelypay annuity benefits to certain group annuitants. Plaintiff seeks declaratory and injunctive relief, as well as unspecified compensatory and punitive damages,and other relief. The court dismissed this matter as to all defendants on January 15, 2019.

Derivative Action and Demands

Kates v. Kandarian, et al. (E.D.N.Y., filed January 18, 2019)

A shareholder seeking to sue derivatively on behalf of MetLife, Inc. commenced an action in federal court against members of the MetLife, Inc. Boardof Directors. Plaintiff asserts claims for breach of fiduciary duty, gross mismanagement, waste of corporate assets, as well as securities fraud claims.Plaintiff alleges that the defendants disseminated or approved public statements that failed to disclose that MetLife’s practices and procedures for estimatingreserves for certain group annuity benefits were inadequate, and that MetLife had inadequate internal control over financial reporting. Plaintiffs allege thatbecause of the defendants’ breaches of duty, MetLife, Inc. has incurred damage to its reputation and has suffered other unspecified damages. The defendantsintend to defend this action vigorously.

Demands

The MetLife, Inc. Board of Directors received five letters, dated March 28, 2018, May 11, 2018, July 16, 2018, December 20, 2018 and February 5,2019, written on behalf of individual stockholders, demanding that MetLife, Inc. take action against current and former directors and officers for allegedbreaches of fiduciary duty and/or investigate, remediate, and recover damages allegedly suffered by the Company as a result of (i) the Company’s allegedlyinadequate practices and procedures for estimating reserves for certain group annuity benefits, (ii) the Company’s allegedly inadequate internal controls overfinancial reporting and corporate governance practices and procedures, and (iii) the alleged dissemination of false or misleading information related to theseissues. The MetLife, Inc. Board of Directors appointed a special committee to investigate the allegations set forth in these five letters.

RegulatoryInquiryRelatedtoAssumedVariableAnnuityGuaranteeReserves

In 2018, the Company announced that it identified a material weakness in its internal control over financial reporting related to the calculation of reservesassociated with certain variable annuity guarantees assumed from the former operating joint venture in Japan. The Division of Enforcement of the SEC isinvestigating this issue and the Company has informed other regulators. It is possible that other regulators may pursue similar investigations or inquiries. TheCompany is exposed to lawsuits and regulatory investigations, and could be exposed to additional legal actions relating to these issues. These may result inpayments, including damages, fines, penalties, interest and other amounts assessed or awarded by courts or regulatory authorities under applicable laws orregulations. The Company could incur significant costs in connection with these actions.

InsolvencyAssessments

Many jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guarantyassociations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers or those thatmay become impaired, insolvent or fail. These associations levy assessments, up to prescribed limits, on all member insurers in a particular jurisdiction on thebasis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged.In addition, certain jurisdictions have government owned or controlled organizations providing life, health and property and casualty insurance to their citizens,whose activities could place additional stress on the adequacy of guaranty fund assessments. Many of these organizations have the power to levy assessmentssimilar to those of the guaranty associations. Some jurisdictions permit member insurers to recover assessments paid through full or partial premium tax offsets.

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Notes to the Consolidated Financial Statements — (continued)

20. Contingencies, Commitments and Guarantees (continued)

Assets and liabilities held for insolvency assessments were as follows:

December 31,

2018 2017

(In millions)

Other Assets: Premium tax offset for future discounted and undiscounted assessments $ 47 $ 56Premium tax offset currently available for paid assessments 46 50

Total $ 93 $ 106Other Liabilities: Insolvency assessments $ 67 $ 75

Commitments

Leases

The Company, as lessee, has entered into various lease and sublease agreements for office space and equipment. Future minimum gross rental paymentsrelating to these lease arrangements are as follows:

Amount

(In millions)

2019 $ 2922020 2822021 2602022 2242023 209Thereafter 859

Total $ 2,126

Operating lease expense was $342 million , $374 million and $383 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Totalminimum rental payments to be received in the future under non-cancelable subleases were $645 million as of December 31, 2018 . Non-cancelable subleaseincome was $72 million , $46 million and $21 million for the years ended December 31, 2018 , 2017 and 2016 , respectively.

MortgageLoanCommitments

The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $4.0 billion and $3.4billion at December 31, 2018 and 2017 , respectively.

CommitmentstoFundPartnershipInvestments,BankCreditFacilities,BridgeLoansandPrivateCorporateBondInvestments

The Company commits to fund partnership investments and to lend funds under bank credit facilities, bridge loans and private corporate bond investments.The amounts of these unfunded commitments were $7.7 billion and $6.1 billion at December 31, 2018 and 2017 , respectively.

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Notes to the Consolidated Financial Statements — (continued)

20. Contingencies, Commitments and Guarantees (continued)

Guarantees

In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be requiredto make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities andguarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among otherthings, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company providesindemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. Theseobligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicablestatutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from lessthan $1 million to $329 million , with a cumulative maximum of $778 million , while in other cases such limitations are not specified or applicable. Since certain ofthese obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become dueunder these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities,guarantees, or commitments.

In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilitiesincurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration oramount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.

The Company also has minimum fund yield requirements on certain pension funds. Since these guarantees are not subject to limitation with respect to durationor amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in thefuture.

The Company’s recorded liabilities were $7 million and $5 million at December 31, 2018 and 2017 , respectively, for indemnities, guarantees andcommitments.

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Notes to the Consolidated Financial Statements — (continued)

21. Quarterly Results of Operations (Unaudited)

The unaudited quarterly results of operations for 2018 and 2017 are summarized in the table below:

Three Months Ended

March 31, June 30, September 30, December 31,

(In millions, except per share data)

2018 Total revenues $ 14,805 $ 21,185 $ 16,289 $ 15,662Total expenses $ 13,149 $ 20,084 $ 15,210 $ 13,191Income (loss) from continuing operations, net of income tax $ 1,257 $ 894 $ 915 $ 2,062Income (loss) from discontinued operations, net of income tax $ — $ — $ — $ —Net income (loss) $ 1,257 $ 894 $ 915 $ 2,062Less: Net income (loss) attributable to noncontrolling interests $ 4 $ 3 $ 3 $ (5)Net income (loss) attributable to MetLife, Inc. $ 1,253 $ 891 $ 912 $ 2,067Less: Preferred stock dividends $ 6 $ 46 $ 32 $ 57Net income (loss) available to MetLife, Inc.’s common shareholders $ 1,247 $ 845 $ 880 $ 2,010Basic earnings per common share

Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders $ 1.20 $ 0.83 $ 0.89 $ 2.05

Income (loss) from discontinued operations, net of income tax, attributable to MetLife, Inc. $ — $ — $ — $ —Net income (loss) attributable to MetLife, Inc. $ 1.21 $ 0.88 $ 0.92 $ 2.11Net income (loss) available to MetLife, Inc.’s common shareholders $ 1.20 $ 0.83 $ 0.89 $ 2.05Diluted earnings per common share

Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders $ 1.19 $ 0.83 $ 0.88 $ 2.04

Income (loss) from discontinued operations, net of income tax, attributable to MetLife, Inc. $ — $ — $ — $ —Net income (loss) attributable to MetLife, Inc. $ 1.20 $ 0.87 $ 0.91 $ 2.09Net income (loss) available to MetLife, Inc.’s common shareholders $ 1.19 $ 0.83 $ 0.88 $ 2.042017 Total revenues $ 14,964 $ 15,333 $ 16,171 $ 15,840Total expenses $ 13,892 $ 14,315 $ 15,686 $ 14,879Income (loss) from continuing operations, net of income tax $ 952 $ 856 $ 883 $ 2,315Income (loss) from discontinued operations, net of income tax $ (76) $ 58 $ (968) $ —Net income (loss) $ 876 $ 914 $ (85) $ 2,315Less: Net income (loss) attributable to noncontrolling interests $ 3 $ 3 $ 6 $ (2)Net income (loss) attributable to MetLife, Inc. $ 873 $ 911 $ (91) $ 2,317Less: Preferred stock dividends $ 6 $ 46 $ 6 $ 45Net income (loss) available to MetLife, Inc.’s common shareholders $ 867 $ 865 $ (97) $ 2,272Basic earnings per common share

Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders $ 0.87 $ 0.76 $ 0.82 $ 2.16

Income (loss) from discontinued operations, net of income tax, attributable to MetLife, Inc. $ (0.07) $ 0.05 $ (0.91) $ —Net income (loss) attributable to MetLife, Inc. $ 0.80 $ 0.86 $ (0.09) $ 2.20Net income (loss) available to MetLife, Inc.’s common shareholders $ 0.80 $ 0.81 $ (0.09) $ 2.16Diluted earnings per common share

Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders $ 0.86 $ 0.75 $ 0.81 $ 2.14

Income (loss) from discontinued operations, net of income tax, attributable to MetLife, Inc. $ (0.07) $ 0.05 $ (0.90) $ —Net income (loss) attributable to MetLife, Inc. $ 0.79 $ 0.85 $ (0.08) $ 2.18Net income (loss) available to MetLife, Inc.’s common shareholders $ 0.79 $ 0.80 $ (0.09) $ 2.14

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MetLife, Inc.

Notes to the Consolidated Financial Statements — (continued)

22. Subsequent Events

PreferredStockDividends

On February 15, 2019 , MetLife, Inc. announced a first quarter 2019 dividend of $0.25 per share, for a total of $6 million , on its Series A preferred stock,subject to the final confirmation that it has met the financial tests specified in the certificate of designation for the Series A preferred stock, which the Companyanticipates will be made and announced on or about March 5, 2019 . The dividend will be payable on March 15, 2019 to shareholders of record as of February 28,2019 .

On February 15, 2019 , MetLife, Inc. announced a first quarter 2019 dividend of $29.375 per share, for a total of $15 million , on its Series D preferred stock,and $351.563 per share, for a total of $11 million , on its Series E preferred stock. Both dividends will be payable on March 15, 2019 to shareholders of record asof February 28, 2019 .

CommonStockRepurchases

In 2019, through February 14 , 2019, MetLife, Inc. repurchased 1,947,100 shares of its common stock in the open market for $85 million .

CommonStockDividend

On January 7, 2019 , the MetLife, Inc. Board of Directors declared a first quarter 2019 common stock dividend of $0.42 per share payable on March 13, 2019to shareholders of record as of February 5, 2019 . The Company estimates that the aggregate dividend payment will be $404 million .

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MetLife, Inc.

Schedule I

Consolidated Summary of Investments —Other Than Investments in Related Parties

December 31, 2018

(In millions)

Types of InvestmentsCost or

Amortized Cost (1) Estimated Fair Value Amount at

Which Shown on Balance Sheet

Fixed maturity securities AFS: Bonds: Foreign government $ 56,353 $ 62,288 $ 62,288U.S. government and agency 37,030 39,322 39,322Public utilities 12,430 13,075 13,075Municipals 10,376 11,533 11,533All other corporate bonds 120,505 121,423 121,423

Total bonds 236,694 247,641 247,641Mortgage-backed and asset-backed securities 49,006 49,471 49,471Redeemable preferred stock 1,116 1,153 1,153

Total fixed maturity securities AFS 286,816 298,265 298,265Unit-linked and FVO Securities 11,809 12,616 12,616Equity securities: Common stock:

Industrial, miscellaneous and all other 667 827 827Banks, trust and insurance companies 67 119 119Public utilities 102 91 91

Non-redeemable preferred stock 422 403 403Total equity securities 1,258 1,440 1,440

Mortgage loans 75,752 75,752Policy loans 9,699 9,699Real estate and real estate joint ventures 9,653 9,653Real estate acquired in satisfaction of debt 45 45Other limited partnership interests 6,613 6,613Short-term investments 3,937 3,937Other invested assets 18,190 18,190

Total investments $ 423,772 $ 436,210__________________

(1) The Unit-linked and FVO Securities are primarily equity securities (including mutual funds) and fixed maturity securities AFS. Amortized cost for fixedmaturity securities AFS and mortgage loans represents original cost reduced by repayments, valuation allowances and impairments from other-than-temporary declines in estimated fair value that are charged to earnings and adjusted for amortization of premium or accretion of discount; for equitysecurities, cost represents original cost; for real estate, cost represents original cost reduced by impairments and depreciation; for real estate joint venturesand other limited partnership interests, cost represents original cost reduced for impairments or original cost adjusted for equity in earnings and distributions.

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MetLife, Inc.

Schedule II

Condensed Financial Information(Parent Company Only)

December 31, 2018 and 2017

(In millions, except share and per share data)

2018 2017Condensed Balance Sheets Assets Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $2,745 and $4,520, respectively) $ 2,726 $ 4,510Fair value option securities, at estimated fair value — 1,357Short-term investments, principally at estimated fair value 16 30Other invested assets, at estimated fair value 87 127

Total investments 2,829 6,024Cash and cash equivalents 376 516Accrued investment income 53 24Investment in subsidiaries 66,567 73,274Loans to subsidiaries 100 100Other assets 843 1,153

Total assets $ 70,768 $ 81,091

Liabilities and Stockholders’ Equity Liabilities Payables for collateral under derivatives transactions $ 9 $ 36Long-term debt — unaffiliated 11,844 14,599Long-term debt — affiliated 1,957 2,000Junior subordinated debt securities 2,456 2,454Other liabilities 1,761 3,326

Total liabilities 18,027 22,415Stockholders’ Equity Preferred stock, par value $0.01 per share; $3,405 and $2,100 aggregate liquidation preference, respectively — —Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,171,824,242 and 1,168,710,101 shares issued,

respectively; 958,613,542 and 1,043,588,396 shares outstanding, respectively 12 12Additional paid-in capital 32,474 31,111Retained earnings 28,926 26,527Treasury stock, at cost; 213,210,700 and 125,121,705 shares, respectively (10,393) (6,401)Accumulated other comprehensive income (loss) 1,722 7,427

Total stockholders’ equity 52,741 58,676Total liabilities and stockholders’ equity $ 70,768 $ 81,091

See accompanying notes to the condensed financial information.

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MetLife, Inc.

Schedule II

Condensed Financial Information — (continued)(Parent Company Only)

For the Years Ended December 31, 2018 , 2017 and 2016

(In millions)

2018 2017 2016

Condensed Statements of Operations Revenues Equity in earnings of subsidiaries $ 6,466 $ 7,162 $ 1,833

Net investment income 87 101 129

Other revenues 19 59 151

Net investment gains (losses) (277) (1,142) 86

Net derivative gains (losses) (56) (186) (68)

Total revenues 6,239 5,994 2,131

Expenses Interest expense 1,009 1,108 1,152

Goodwill impairment — — 147

Termination of financing arrangements — 294 2

Other expenses 158 657 388

Total expenses 1,167 2,059 1,689

Income (loss) before provision for income tax 5,072 3,935 442

Provision for income tax expense (benefit) (51) (75) (408)

Net income (loss) 5,123 4,010 850

Less: Preferred stock dividends 141 103 103

Net income (loss) available to common shareholders $ 4,982 $ 3,907 $ 747

Comprehensive income (loss) $ (1,494) $ 7,391 $ 1,449

See accompanying notes to the condensed financial information.

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MetLife, Inc.

Schedule II

Condensed Financial Information — (continued)(Parent Company Only)

For the Years Ended December 31, 2018 , 2017 and 2016

(In millions)

2018 2017 2016

Condensed Statements of Cash Flows Cash flows from operating activities Net income (loss) $ 5,123 $ 4,010 $ 850Earnings of subsidiaries (6,466) (7,162) (1,833)Dividends from subsidiaries 7,367 6,745 4,470(Gains) losses on investments and from sales of businesses, net 277 1,142 (86)Goodwill impairment — — 147Tax separation agreement charge — 1,093 —Other, net (807) 634 199

Net cash provided by (used in) operating activities 5,494 6,462 3,747Cash flows from investing activities Sales of fixed maturity securities available-for-sale 9,635 7,217 8,603Purchases of fixed maturity securities available-for-sale (8,178) (7,733) (7,409)Cash received in connection with freestanding derivatives 227 452 311Cash paid in connection with freestanding derivatives (237) (629) (561)Sales of businesses — — 291Expense paid on behalf of subsidiaries (14) (42) (68)Receipts on loans to subsidiaries — — 140Issuances of loans to subsidiaries — — (140)Returns of capital from subsidiaries 87 610 80Capital contributions to subsidiaries (767) (339) (1,733)Net change in short-term investments 14 118 120Other, net (3) (14) (18)

Net cash provided by (used in) investing activities 764 (360) (384)Cash flows from financing activities Net change in payables for collateral under derivative transactions (27) (111) (80)Long-term debt repaid (1,759) (1,000) (1,250)Fees paid for the termination of a committed facility related to Separation — (244) (2)Treasury stock acquired in connection with share repurchases (3,992) (2,927) (372)Preferred stock issued, net of issuance costs 1,274 — —Dividends on preferred stock (141) (103) (103)Dividends on common stock (1,678) (1,717) (1,736)Other, net (75) 182 93

Net cash provided by (used in) financing activities (6,398) (5,920) (3,450)Change in cash and cash equivalents (140) 182 (87)

Cash and cash equivalents, beginning of year 516 334 421Cash and cash equivalents, end of year $ 376 $ 516 $ 334

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MetLife, Inc.

Schedule II

Condensed Financial Information — (continued)(Parent Company Only)

For the Years Ended December 31, 2018 , 2017 and 2016

(In millions)

2018 2017 2016

Supplemental disclosures of cash flow information Net cash paid (received) for: Interest $ 1,040 $ 1,096 $ 1,146Income tax: Amounts paid to (received from) subsidiaries, net $ (33) $ (1,552) $ (569)Amounts paid to Brighthouse in accordance with the tax separation agreement 909 729 —Income tax paid (received) by MetLife, Inc., net 1 (37) 136

Total income tax, net $ 877 $ (860) $ (433)Non-cash transactions: Dividends from subsidiary $ — $ — $ 2,652Returns of capital from subsidiaries $ 3,844 $ 17,518 $ 372Capital contributions to subsidiaries $ 3,844 $ 15,655 $ 157Distribution of Brighthouse $ — $ 10,346 $ —Allocation of interest expense to subsidiary $ — $ 15 $ 39Allocation of interest income to subsidiary $ — $ 4 $ 54Brighthouse common stock exchange transaction (Note 3): Reduction of long-term debt $ 944 $ — $ —Reduction of fair value option securities $ 1,030 $ — $ —

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MetLife, Inc.

Schedule II

Notes to the Condensed Financial Information(Parent Company Only)

1. Basis of Presentation

The condensed financial information of MetLife, Inc. (the “Parent Company”) should be read in conjunction with the consolidated financial statements ofMetLife, Inc. and its subsidiaries and the notes thereto (the “Consolidated Financial Statements”). These condensed unconsolidated financial statements reflect theresults of operations, financial position and cash flows for MetLife, Inc. Investments in subsidiaries are accounted for using the equity method of accounting.

The preparation of these condensed unconsolidated financial statements in conformity with GAAP requires management to adopt accounting policies andmake certain estimates and assumptions. The most important of these estimates and assumptions relate to the fair value measurements, the accounting for goodwilland identifiable intangible assets and the provision for potential losses that may arise from litigation and regulatory proceedings and tax audits, which may affectthe amounts reported in the condensed unconsolidated financial statements and accompanying notes. Actual results could differ from these estimates.

2. Investment in Subsidiaries

On August 3, 2017, Brighthouse Financial, Inc. paid a cash dividend to MetLife, Inc. of $1.8 billion in connection with the Separation.

In December 2016, MLIC transferred the issued and outstanding shares of the common stock of each of NELICO and GALIC to MetLife, Inc. in the form of anon-cash extraordinary dividend of $2.7 billion .

In February 2016, MetLife, Inc. paid a cash capital contribution of $1.5 billion to Brighthouse Insurance in connection with the Separation.

In December 2015, MetLife, Inc. accrued $50 million , $45 million and $25 million in capital contributions payable to the following captive reinsurers: MRV,MetLife Reinsurance Company of Delaware (“MRD”) and MRSC, respectively, which were included in payables to subsidiaries at December 31, 2015. Thepayables were settled for cash in February 2016.

3. Loans to Subsidiaries

MetLife, Inc. lends funds as necessary, through credit agreements or otherwise to its subsidiaries, some of which are regulated, to meet their capitalrequirements or to provide liquidity. Payments of interest and principal on surplus notes of regulated subsidiaries, which are subordinate to all other obligations ofthe issuing company, may be made only with the prior approval of the insurance department of the state of domicile.

In April 2017, in connection with the Separation, MetLife, Inc. repaid $750 million and $350 million senior notes to MRD due September 2032 and December2033 , respectively, in an exchange transaction . The $750 million senior note bore interest at a fixed rate of 4.21% and the $350 million senior note bore interest ata fixed rate of 5.10% . Simultaneously, MRD repaid $750 million and $350 million surplus notes to MetLife, Inc. The $750 million surplus note bore interest at afixed rate of 5.13% and the $350 million surplus note bore interest at a fixed rate of 6.00% (the “MRD Notes Exchange”).

In April 2016, American Life issued a $140 million short-term note to MetLife, Inc. which was repaid in July 2016. The short-term note bore interest at six-month LIBOR plus 1.00% .

Interest income earned on loans to subsidiaries of $3 million , $44 million and $64 million for the years ended December 31, 2018 , 2017 and 2016 ,respectively, is included in net investment income.

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MetLife, Inc.

Schedule II

Notes to the Condensed Financial Information — (continued)

(Parent Company Only)

4. Long-term Debt

Long-term debt outstanding was as follows:

Interest Rates (1) December 31,

Range Weighted Average Maturity 2018 2017

(Dollars in millions)Senior notes — unaffiliated (2) 3.00% - 6.50% 4.96% 2020 - 2046 $ 11,844 $ 14,599Senior notes — affiliated 0.82% - 3.14% 2.16% 2019 - 2021 1,957 2,000

Total $ 13,801 $ 16,599__________________

(1) Range of interest rates and weighted average interest rates are for the year ended December 31, 2018 .

(2) Net of $79 million and $86 million of unamortized issuance costs and net premiums and discounts at December 31, 2018 and 2017 , respectively.

See Note 12 of the Notes to the Consolidated Financial Statements.

The aggregate maturities of long-term debt at December 31, 2018 for the next five years and thereafter are $728 million in 2019, $750 million in 2020,$1.4 billion in 2021, $500 million in 2022, $1.0 billion in 2023 and $9.5 billion thereafter.

CreditFacility–Affiliated

In June 2016, MetLife, Inc. entered into a five-year agreement with an indirect wholly-owned subsidiary, MetLife Ireland Treasury d.a.c. (formerly known asMetLife Ireland Treasury Limited) (“MIT”), to borrow up to $1.3 billion on a revolving basis, at interest rates based on the IRS safe harbor interest rate in effect atthe time of the borrowing. MetLife, Inc. may borrow funds under the agreement at MIT’s discretion and subject to the availability of funds. There were nooutstanding borrowings at December 31, 2018 .

Long-termDebt–Affiliated

In June 2016 and March 2016, MetLife, Inc. repaid $204 million and $10 million , respectively, of affiliated long-term debt to MetLife Exchange Trust I atmaturity in exchange for a return of capital. The long-term notes bore interest at three-month LIBOR plus 0.7% .

SeniorNotes–Affiliated

In May 2018, $500 million in senior notes previously issued by MetLife, Inc. to MLIC and other subsidiaries were redenominated to new 54.6 billion Japaneseyen senior notes. The 54.6 billion Japanese yen senior notes mature in December 2021 and bear interest at a rate per annum of 3.14% , payable semi-annually.

In April 2018, $500 million in senior notes previously issued by MetLife, Inc. to MLIC and other subsidiaries were redenominated to new 53.7 billionJapanese yen senior notes. The 53.7 billion Japanese yen senior notes mature in July 2021 and bear interest at a rate per annum of 2.97% , payable semi-annually.

In March 2018, three senior notes previously issued by MetLife, Inc. to MLIC were redenominated to Japanese yen. A $500 million senior note wasredenominated to a new 53.3 billion Japanese yen senior note. The 53.3 billion Japanese yen senior note matures in June 2019 and bears interest at a rate per annumof 1.45% , payable semi-annually. A $250 million senior note was redenominated to a new 26.5 billion Japanese yen senior note. The 26.5 billion Japanese yensenior note matures in October 2019 and bears interest at a rate per annum of 1.72% , payable semi-annually. A $250 million senior note was also redenominated toa new 26.5 billion Japanese yen senior note. The 26.5 billion Japanese yen senior note matures in September 2020 and bears interest at a rate per annum of 0.82% ,payable semi-annually.

In September 2016, a $250 million senior note issued to MLIC matured and, subsequently, in September 2016 MetLife, Inc. issued a new $250 million seniornote to MLIC. The senior note matures in September 2020 and bears interest at a rate per annum of 3.03% , payable semi-annually.

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Schedule II

Notes to the Condensed Financial Information — (continued)

(Parent Company Only)

4. Long-term Debt (continued)

See Note 3 for information on the MRD Notes Exchange in 2017.

InterestExpense

Interest expense was comprised of the following:

Years Ended December 31,

2018 2017 2016

(In millions)

Long-term debt — unaffiliated $ 755 $ 774 $ 811Long-term debt — affiliated 45 112 160Collateral financing arrangements 6 27 47Junior subordinated debt securities 203 195 134

Total $ 1,009 $ 1,108 $ 1,152

See Notes 13 and 14 of the Notes to the Consolidated Financial Statements for information about the collateral financing arrangement and junior subordinateddebt securities. See also Note 3 of the Notes to the Consolidated Financial Statements regarding the termination of the MRSC collateral financing arrangement.

5. Junior Subordinated Debt Securities

In February 2017, in connection with the Separation, MetLife, Inc. exchanged $750 million aggregate principal amount of its 9.250% Fixed-to-Floating RateJunior Subordinated Debentures due 2068 for $750 million aggregate liquidation preference of the 9.250% Fixed-to-Floating Rate Exchangeable Surplus TrustSecurities of the Trust. As a result of the exchange, MetLife, Inc. became the sole beneficial owner of the Trust, a SPE, which issued the exchangeable surplus trustsecurities to third party investors. In March 2017, MetLife, Inc. dissolved the Trust and became the direct holder of $750 million 8.595% surplus notes previouslyheld by the Trust that were issued by Brighthouse Insurance. In June 2017, MetLife, Inc. forgave Brighthouse Insurance’s obligation to pay the principal amount ofsuch surplus notes.

6. Support Agreements

MetLife, Inc. is party to various capital support commitments and guarantees with certain of its subsidiaries. Under these arrangements, MetLife, Inc. hasagreed to cause each such entity to meet specified capital and surplus levels or has guaranteed certain contractual obligations.

MetLife, Inc. guarantees the obligations of its subsidiary, Missouri Reinsurance, Inc. (“MoRe”), under a retrocession agreement with RGA Reinsurance(Barbados) Inc., pursuant to which MoRe retrocedes a portion of the closed block liabilities associated with industrial life and ordinary life insurance policies that itassumed from MLIC.

MetLife, Inc. guarantees the obligations of MetLife Reinsurance Company of Bermuda, Ltd. (“MrB”), a Bermuda insurance affiliate and an indirect, wholly-owned subsidiary of MetLife, Inc. under a reinsurance agreement with Mitsui Sumitomo Primary Life Insurance Co., Ltd. (“Mitsui”), a former affiliate that is nowan unaffiliated third party, under which MrB reinsures certain variable annuity business written by Mitsui.

MetLife, Inc. guarantees the obligations of MrB in an aggregate amount up to $1.0 billion , under a reinsurance agreement with MetLife Europe d.a.c.(“MEL”) (formerly known as MetLife Europe Limited), under which MrB reinsured the guaranteed living benefits and guaranteed death benefits associated withcertain unit-linked variable annuity type liability contracts issued by MEL.

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Schedule II

Notes to the Condensed Financial Information — (continued)

(Parent Company Only)

6. Support Agreements (continued)

MetLife, Inc., in connection with MRV’s reinsurance of certain universal life and term life insurance risks, committed to the Vermont Department of Banking,Insurance, Securities and Health Care Administration to take necessary action to cause the two protected cells of MRV to maintain total adjusted capital in anamount that is equal to or greater than 200% of each such protected cell’s authorized control level RBC, as defined in Vermont state insurance statutes. See Note 12 of the Notes to the Consolidated Financial Statements.

MetLife, Inc., in connection with the collateral financing arrangement associated with MRC’s reinsurance of a portion of the liabilities associated with theclosed block, committed to the South Carolina Department of Insurance to make capital contributions, if necessary, to MRC so that MRC may at all times maintainits total adjusted capital in an amount that is equal to or greater than 200% of the Company Action Level RBC, as defined in South Carolina state insurance statutesas in effect on the date of determination or December 31, 2007, whichever calculation produces the greater capital requirement, or as otherwise required by theSouth Carolina Department of Insurance. See Note 13 of the Notes to the Consolidated Financial Statements.

MetLife, Inc. guarantees obligations arising from OTC-bilateral derivatives of the following subsidiaries: MrB, MetLife International Holdings, LLC andMetLife Worldwide Holdings, LLC. These subsidiaries are exposed to various risks relating to their ongoing business operations, including interest rate, foreigncurrency exchange rate, credit and equity market. These subsidiaries use a variety of strategies to manage these risks, including the use of derivatives. Further, allof the subsidiaries’ derivatives are subject to industry standard netting agreements and collateral agreements that limit the unsecured portion of any open derivativeposition. On a net counterparty basis at December 31, 2018 and 2017 , derivative transactions with positive mark-to-market values (in-the-money) were$302 million and $515 million , respectively, and derivative transactions with negative mark-to-market values (out-of-the-money) were $84 million and$126 million , respectively. To secure the obligations represented by the out of-the-money transactions, the subsidiaries had provided collateral to theircounterparties with an estimated fair value of $84 million and $114 million at December 31, 2018 and 2017 , respectively. Accordingly, unsecured derivativeliabilities guaranteed by MetLife, Inc. were $0 and $12 million at December 31, 2018 and 2017 , respectively.

MetLife, Inc. also guarantees the obligations of certain of its subsidiaries under committed facilities with third-party banks. See Note 12 of the Notes to theConsolidated Financial Statements.

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Schedule III

Consolidated Supplementary Insurance InformationDecember 31, 2018 and 2017

(In millions)

Segment

DACand

VOBA

Future Policy Benefits, Other Policy-Related

Balances and Policyholder Dividend

Obligation

PolicyholderAccountBalances

PolicyholderDividendsPayable

Unearned Premiums (1), (2)

Unearned Revenue (1)

2018 U.S. $ 633 $ 72,639 $ 69,002 $ — $ 1,945 $ 36Asia 10,156 41,846 66,610 86 2,381 1,299Latin America 1,984 10,170 5,961 — 119 719EMEA 1,622 5,357 11,712 5 19 464MetLife Holdings 4,474 72,405 30,394 586 162 192Corporate & Other 26 1,320 14 — — —

Total $ 18,895 $ 203,737 $ 183,693 $ 677 $ 4,626 $ 2,710

2017 U.S. $ 614 $ 65,610 $ 70,455 $ — $ 1,907 $ 24Asia 9,261 39,702 59,702 80 2,378 916Latin America 2,050 10,397 6,361 — 115 675EMEA 1,673 5,768 13,811 7 24 454MetLife Holdings 4,797 73,317 32,176 595 167 205Corporate & Other 24 816 13 — 1 —

Total $ 18,419 $ 195,610 $ 182,518 $ 682 $ 4,592 $ 2,274__________________

(1) Amounts are included within the future policy benefits, other policy-related balances and policyholder dividend obligation column.

(2) Includes premiums received in advance.

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Schedule III

Consolidated Supplementary Insurance Information — (continued)For the Years Ended December 31, 2018 , 2017 and 2016

(In millions)

Segment

Premiums and Universal Life

and Investment-Type Product Policy Fees

Net Investment

Income

Policyholder Benefits and Claims and

Interest Credited to Policyholder

Account Balances

Amortization of DAC and

VOBA Charged to

Other Expenses

Other Expenses (1)

2018 U.S. $ 29,239 $ 6,703 $ 29,539 $ 477 $ 3,466Asia 8,390 3,055 6,559 1,297 1,903Latin America 3,817 1,194 3,057 209 1,044EMEA 2,587 (195) 772 433 909MetLife Holdings 5,191 5,222 6,662 553 2,286Corporate & Other 118 187 80 6 2,382

Total $ 49,342 $ 16,166 $ 46,669 $ 2,975 $ 11,990

2017 U.S. $ 24,644 $ 6,201 $ 25,103 $ 459 $ 3,235Asia 8,352 3,299 6,799 1,310 1,802Latin America 3,737 1,288 2,973 224 1,111EMEA 2,492 1,157 2,012 356 966MetLife Holdings 5,603 5,426 7,097 234 2,550Corporate & Other (326) (8) (64) 98 2,507

Total $ 44,502 $ 17,363 $ 43,920 $ 2,681 $ 12,171

2016 U.S. $ 22,490 $ 5,942 $ 22,892 $ 471 $ 3,244Asia 8,914 2,807 6,916 1,350 1,795Latin America 3,554 1,133 2,770 184 1,007EMEA 2,442 1,229 2,064 408 924MetLife Holdings 6,034 5,670 7,521 424 3,392Corporate & Other (749) 9 (629) (119) 1,892

Total $ 42,685 $ 16,790 $ 41,534 $ 2,718 $ 12,254______________

(1) Includes other expenses and policyholder dividends, excluding amortization of DAC and VOBA charged to other expenses.

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Schedule IV

Consolidated ReinsuranceDecember 31, 2018 , 2017 and 2016

(Dollars in millions)

Gross Amount Ceded Assumed Net Amount % Amount Assumed

to Net

2018 Life insurance in-force $ 4,963,820 $ 507,589 $ 532,511 $ 4,988,742 10.7%Insurance premium Life insurance (1) $ 26,356 $ 1,792 $ 1,791 $ 26,355 6.8%Accident & health insurance 14,166 515 212 13,863 1.5%Property and casualty insurance 3,677 73 18 3,622 0.5%

Total insurance premium $ 44,199 $ 2,380 $ 2,021 $ 43,840 4.6%

2017 Life insurance in-force $ 4,594,523 $ 513,091 $ 581,246 $ 4,662,678 12.5%Insurance premium Life insurance (1) $ 22,379 $ 1,863 $ 1,531 $ 22,047 6.9%Accident & health insurance 13,593 442 223 13,374 1.7%Property and casualty insurance 3,623 71 19 3,571 0.5%

Total insurance premium $ 39,595 $ 2,376 $ 1,773 $ 38,992 4.5%

2016 Life insurance in-force $ 4,098,780 $ 481,028 $ 613,693 $ 4,231,445 14.5%Insurance premium Life insurance (1) $ 20,857 $ 1,614 $ 1,089 $ 20,332 5.4%Accident & health insurance 13,551 447 257 13,361 1.9%Property and casualty insurance 3,567 75 17 3,509 0.5%

Total insurance premium $ 37,975 $ 2,136 $ 1,363 $ 37,202 3.7%__________________

(1) Includes annuities with life contingencies.

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Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

EvaluationofDisclosureControlsandProcedures

The Company maintains disclosure controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act. The Company has designedthese controls and procedures to ensure that information the Company is required to disclose in reports filed under the Exchange Act is recorded, processed,summarized and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to Company management,including the CEO and CFO as appropriate, to allow timely decisions regarding required disclosure.

Management, including the CEO and CFO, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedurespursuant to Rule 13a-15(b) under the Exchange Act as of the end of the period covered by this Annual Report on Form 10-K. Based on that evaluation, the CEOand CFO concluded that the disclosure controls and procedures were effective as of December 31, 2018.

Management’sAnnualReportonInternalControlOverFinancialReporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15d-15(f)under the Exchange Act. In fulfilling this responsibility, management’s estimates and judgments must assess the expected benefits and related costs of controlprocedures. The Company’s internal control objectives include providing management with reasonable, but not absolute, assurance that the Company hassafeguarded assets against loss from unauthorized use or disposition, and that the Company has executed transactions in accordance with management’sauthorization and recorded them properly to permit the preparation of consolidated financial statements in conformity with GAAP.

Management evaluated the design and operating effectiveness of the Company’s internal control over financial reporting based on the criteria established inthe Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the “ COSOframework”). In the opinion of management, MetLife, Inc. maintained effective internal control over financial reporting as of December 31, 2018.

Deloitte has issued its report on its audit of the effectiveness of internal control over financial reporting, which is included on page 367.

ChangesinInternalControlOverFinancialReporting

Except with respect to our remedial actions described below, the Company did not materially change its internal control over financial reporting as defined inRule 13a-15(f) under the Exchange Act during the quarter ended December 31, 2018, and made no changes that it believes are reasonably likely to materiallyaffect, its internal control over financial reporting.

RemediationofMaterialWeaknesses

The Company identified the following material weaknesses in the principles associated with both the control activities and information and communicationcomponents of the COSO framework as of December 31, 2017 in its annual report on Form 10-K for the year ended December 31, 2017:

RISGroupAnnuityReserves:

• Ineffective design and operating effectiveness of the controls related to processes and procedures for identifying unresponsive and missing group annuityannuitants and pension beneficiaries (Control Activities); and

• Ineffective design and operating effectiveness of the controls intended to ensure timely communication and escalation of the issue throughout theCompany (Information and Communication).

MetLifeHoldingsAssumedVariableAnnuityGuaranteeReserves:

Ineffective design and operating effectiveness of the controls related to data validation and monitoring of reserves for variable annuity guarantees issued bya former operating joint venture in Japan and reinsured by the Company and included within MetLife Holdings (Control Activities).

The Company’s remediation steps outlined below strengthened its internal control over financial reporting. As of December 31, 2018, the Company hadimplemented these enhanced procedures and controls and successfully tested them. As a result, the Company concluded that it had remediated the materialweaknesses associated with RIS Group Annuity Reserves and MetLife Holdings Assumed Variable Annuity Guarantee Reserves as of that date.

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To remediate the material weaknesses identified above, management performed the following actions:

RISGroupAnnuityReserves:

• The Company engaged third party advisors and employees, supervised by MetLife, Inc.’s CRO, to examine and analyze the facts and circumstancesgiving rise to the material weakness and addressed those findings;

• The Company changed its accounting procedures, administrative and search practices to identify, contact, and record responses from “unresponsive andmissing” plan annuitants and to otherwise locate missing annuitants; and

• The Company implemented enhanced internal controls associated with timely internal communication and escalation procedures and governance.

MetLifeHoldingsAssumedVariableAnnuityGuaranteeReserves:

• The Company engaged third party advisors and employees, supervised by MetLife, Inc.’s Chief Auditor, to examine and analyze the facts andcircumstances giving rise to the material weakness, and addressed those findings; and

• The Company enhanced its reconciliation, analytic controls, and change management to ensure the completeness and accuracy of the assumed reinsurancein-force data.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the stockholders and the Board of Directors of MetLife, Inc.

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of MetLife, Inc. and subsidiaries (the “Company”) as of December 31, 2018, based on criteriaestablished in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Inour opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteriaestablished in Internal Control — Integrated Framework (2013) issued by COSO .

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financialstatements as of and for the year ended December 31, 2018, of the Company and our report dated February 21, 2019, expressed an unqualified opinion on thoseconsolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internalcontrol over financial reporting, included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is toexpress an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB andare required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of theSecurities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internalcontrol over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonablebasis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financialreporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation ofeffectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance withthe policies or procedures may deteriorate.

/s/ DELOITTE & TOUCHE LLPNew York, New YorkFebruary 21 , 2019

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Item 9B. Other Information

None.

Part III

Item 10. Directors, Executive Officers and Corporate Governance

The information called for by this Item pertaining to Directors is incorporated herein by reference to the sections entitled “Proxy Summary — DirectorNominees’ Experience, Tenure, Independence and Diversity,” “Proposal 1 — Election of Directors For a One-Year Term Ending at the 2020 Annual Meeting ofShareholders — Director Nominees” and “Proposal 1 — Election of Directors For a One-Year Term Ending at the 2020 Annual Meeting of Shareholders —Corporate Governance — Information About the Board of Directors” and “Other Information — Section 16(a) Beneficial Ownership Reporting Compliance” inMetLife, Inc.’s definitive proxy statement for the Annual Meeting of Shareholders to be held on June 18, 2019 , to be filed by MetLife, Inc. with the SEC pursuantto Regulation 14A within 120 days after the year ended December 31, 2018 (the “2019 Proxy Statement”).

The information called for by this Item pertaining to Executive Officers appears in “Business — Executive Officers” in this Annual Report on Form 10-K and“Other Information — Section 16(a) Beneficial Ownership Reporting Compliance” in the 2019 Proxy Statement.

The Company has adopted the MetLife Financial Management Code of Professional Conduct (the “Financial Management Code”), a “code of ethics” asdefined under the rules of the SEC, that applies to MetLife, Inc.’s Chief Executive Officer, Chief Financial Officer, Chief Accounting Officer and all professionalsin finance and finance-related departments. In addition, the Company has adopted the Directors’ Code of Business Conduct and Ethics (the “Directors’ Code”)which applies to all members of MetLife, Inc.’s Board of Directors, including the Chief Executive Officer, and the Code of Conduct (together with the FinancialManagement Code and the Directors’ Code, collectively, the “Ethics Codes”), which applies to all employees of the Company, including MetLife, Inc.’s ChiefExecutive Officer, Chief Financial Officer and Chief Accounting Officer. The Ethics Codes are available on the Company’s website athttps://www.metlife.com/about-us/corporate-governance/corporate-conduct/. The Company intends to satisfy its disclosure obligations under Item 5.05 of Form 8-K by posting information about amendments to, or waivers from a provision of, the Ethics Codes that apply to MetLife, Inc.’s Chief Executive Officer, ChiefFinancial Officer and Chief Accounting Officer on the Company’s website at the address given above.

Item 11. Executive Compensation

The information called for by this Item is incorporated herein by reference to the sections entitled “Proposal 1 — Election of Directors for a One-Year TermEnding at the 2020 Annual Meeting of Shareholders — Corporate Governance — Information About the Board of Directors,” “ Proposal 1 — Election ofDirectors for a One-Year Term Ending at the 2020 Annual Meeting of Shareholders — Director Compensation in 2018 ,” and “Proposal 3 — Advisory Vote toApprove the Compensation Paid to the Company’s Named Executive Officers” in the 2019 Proxy Statement.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information called for by this Item pertaining to ownership of shares of MetLife, Inc.’s common stock (“Shares”) is incorporated herein by reference tothe sections entitled “Other Information — Security Ownership of Directors and Executive Officers” and “Other Information — Security Ownership of CertainBeneficial Owners” in the 2019 Proxy Statement.

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The following table provides information at December 31, 2018 , regarding MetLife, Inc.’s equity compensation plans:

Equity Compensation Plan Information at December 31, 2018

Number of Securities tobe Issued upon Exerciseof Outstanding Options,Warrants and Rights (1)

Weighted-averageExercise Price of

Outstanding Options,Warrants and Rights (2)

Number of SecuritiesRemaining Available forFuture Issuance UnderEquity Compensation

Plans (ExcludingSecurities Reflected in

Column (a))(3)

Plan Category (a) (b) (c)Equity compensation plans approved by security holders 23,814,156 $ 36.70 39,004,985Equity compensation plans not approved by security holders None — None

Total 23,814,156 $ 36.70 39,004,985______________

(1) Column (a) reflects the following items outstanding as of December 31, 2018 :

Stock Options 12,355,294Restricted Stock Units 2,946,269Performance Shares (assuming future payout at maximum performance factor) 7,077,410Deferred Shares 1,435,183

Shares that will or may be issued 23,814,156

As of December 31, 2018:

• Stock Options under the MetLife, Inc. 2015 Stock and Incentive Compensation Plan (the “2015 Stock Plan”) and its predecessor plan, the MetLife, Inc.2005 Stock and Incentive Compensation Plan (the “2005 Stock Plan”) were outstanding;

• Restricted Stock Units and Performance Shares under the 2015 Stock Plan were outstanding; and

• Deferred Shares related to awards under the 2015 Stock Plan, MetLife, Inc. 2015 Non-Management Directors Stock Compensation Plan (the “2015Director Stock Plan”), 2005 Stock Plan, MetLife, Inc. 2005 Non-Management Directors Stock Compensation Plan (the “2005 Director Stock Plan”), andearlier plans, were outstanding. Deferred Shares are related to awards that have become payable in Shares under any plan, but the issuance of which hasbeen deferred.

The maximum performance factor for Performance Shares granted in 2016, 2017, and 2018 was 175%. The number of Performance Shares outstanding as ofDecember 31, 2018 at target (100%) performance factor was 4,044,234.

MetLife, Inc. may issue Shares pursuant to awards (including Stock Option exercises, if any) under any plan using Shares held in treasury by MetLife, Inc. orby issuing new Shares.

For a general description of how the number of Shares paid out on account of Performance Shares and Restricted Stock Units is determined, and the vestingperiods applicable to Performance Shares and Restricted Stock Units, see Note 15 of the Notes to the Consolidated Financial Statements.

(2) Column (b) reflects the weighted average exercise price of all Stock Options under any plan that, as of December 31, 2018 , had been granted but notforfeited, expired, or exercised. Performance Shares, Restricted Stock Units, and Deferred Shares are not included in determining the weighted average incolumn (b) because they have no exercise price.

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(3) Column (c) reflects the following items outstanding as of December 31, 2018 :

Number of SharesAt January 15, 2015, the effective date of the 2015 Stock Plan and 2015 Director Stock Plan:

Shares newly authorized for issuance under the 2015 Stock Plan 11,750,000Shares remaining authorized for issuance under the 2005 Stock Plan or other plans that were not covered by awards (i) 18,023,959Shares authorized for issuance under the 2015 Director Stock Plan (ii) 1,642,208Total Shares authorized for issuance at January 1, 2015 31,416,167

Additional Shares recovered for issuance (iii) in: 2015 4,475,7372016 6,344,4552017 6,636,1932018 5,655,122Total Shares recovered for issuance since January 1, 2015 23,111,507

Less: Shares covered by new awards and new imputed reinvested dividends on Deferred Shares (iv) in: 2015 4,413,7852016 6,036,1772017 4,532,8972018 4,519,557Total Shares covered by new awards and new imputed reinvested dividends on Deferred Shares since January 1, 2015 19,502,416

Net shares added to the 2015 Stock Plan and 2015 Director Plan authorizations in light of the Separation (v) 3,979,727

Shares remaining available for future issuance under the 2015 Stock Plan and 2015 Director Stock Plan 39,004,985______________

(i) Consists of Shares that were not covered by awards, including Shares previously covered by awards but recovered due to forfeiture of awards or otherreasons and once again available for issuance.

(ii) Consists of Shares remaining authorized for issuance under the predecessor plan, the 2005 Director Stock Plan, that were not covered by awards,including Shares previously covered by awards but recovered due to forfeiture of awards or other reasons and once again available.

(iii) Consists of Shares utilized under the 2005 Stock Plan or 2015 Stock Plan that were recovered during each of the indicated calendar years, and thereforeonce again available for issuance, due to: (i) termination of the award by expiration, forfeiture, cancellation, lapse, or otherwise without issuing Shares;(ii) settlement of the award in cash either in lieu of Shares or otherwise; (iii) exchange of the award for awards not involving Shares; (iv) payment of theexercise price of a Stock Option, or the tax withholding requirements with respect to an award, satisfied by tendering Shares to MetLife, Inc. (by eitheractual delivery or by attestation); (v) satisfaction of tax withholding requirements with respect to an award satisfied by MetLife, Inc. withholding Sharesotherwise issuable; and (vi) the payout of Performance Shares at any performance factor less than the maximum performance factor.

(iv) Consists of Shares covered by awards granted under the 2015 Stock Plan (including Performance Shares assuming future payout at maximumperformance factor). Shares covered by awards granted under the 2015 Directors Stock Plan and Shares covered by imputed reinvested dividends creditedon Deferred Shares owed to directors, employees or agents, in each case during each of the indicated calendar years.

(v) In light of the Separation, and in order to maintain the Share authorizations under each plan at the levels that shareholders had approved, MetLife, Inc.increased the number of Shares authorized for issuance under the 2015 Stock Plan and 2015 Director Plan as of August 4, 2017, excluding those Sharesfrom the authorizations that had already been issued, by the Adjustment Ratio. MetLife, Inc. also increased the number of Shares covered by outstandingStock Options, Performance Shares, Restricted Stock Units, and Deferred Shares on that date by the Adjustment Ratio, in order to maintain the intrinsicvalue of those awards and Deferred Shares, which decreased the number of Shares available for issuance under both plans. The amount in this row is thenet increase in the Share authorization under both the 2015

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Stock Plan and 2015 Director Plan as a result of these adjustments. For a description of the adjustment to Stock Options, Performance Shares, RestrictedStock Units, and Deferred Shares, see Note 15 of the Notes to the Consolidated Financial Statements.

Each Share MetLife, Inc. issues in connection with awards granted under the MetLife, Inc. 2005 Stock Plan other than Stock Options or Stock AppreciationRights (such as Shares payable on account of Performance Shares or Restricted Stock Units under that plan, including any Deferred Shares resulting from suchawards) reduces the number of Shares remaining for issuance by 1.179 (“2005 Stock Plan Share Award Ratio”). Each Share MetLife, Inc. issues in connection witha Stock Option or Stock Appreciation Right granted under the 2005 Stock Plan, or in connection with any award under any other plan for employees and agents(including any Deferred Shares resulting from such awards), reduces the number of Shares remaining for issuance by 1.0. (“Standard Award Ratio”). Shares relatedto awards that are recovered, and therefore authorized for issuance under the 2015 Stock Plan, are recovered with consideration of the 2005 Stock Plan ShareAward Ratio and Standard Award Ratio, as applicable. Each Share MetLife, Inc. issues under the 2005 Director Stock Plan or 2015 Director Stock Plan (includingany Deferred Shares resulting from such awards) reduces the number of Shares remaining for issuance under that plan by one. Shares related to awards that arerecovered, and therefore authorized for issuance under the 2015 Director Stock Plan are recovered with consideration of this ratio. If MetLife, Inc. was to grant aShare-settled Stock Appreciation Right under the 2015 Stock Plan and the award holder exercised it, only the number of Shares MetLife, Inc. issued, net of theShares tendered, if any, would be deemed delivered for purposes of determining the maximum number of Shares MetLife, Inc. may issue under the 2015 StockPlan.

Any Shares covered by awards under the 2015 Director Stock Plan that were to be recovered due to (i) termination of the award by expiration, forfeiture,cancellation, lapse, or otherwise without issuing Shares; (ii) settlement of the award in cash either in lieu of Shares or otherwise; (iii) exchange of the award forawards not involving Shares; and (iv) payment of the exercise price of a Stock Option, or the tax withholding requirements with respect to an award, satisfied bytendering Shares to MetLife, Inc. (by either actual delivery or by attestation) would be available to be issued under the 2015 Director Stock Plan. In addition, ifMetLife, Inc. was to grant a Share-settled Stock Appreciation Right under the 2015 Director Stock Plan, only the number of Shares issued, net of the Sharestendered, if any, would be deemed delivered for purposes of determining the maximum number of Shares available for issuance under the 2015 Director StockPlan.

Under both the 2015 Stock Plan and the 2015 Director Stock Plan, in the event of a corporate event or transaction (including, but not limited to, a change in theShares or the capitalization of MetLife) such as a merger, consolidation, reorganization, recapitalization, separation, stock dividend, extraordinary dividend, stocksplit, reverse stock split, split up, spin-off, or other distribution of stock or property of MetLife, combination of securities, exchange of securities, dividend in kind,or other like change in capital structure or distribution (other than normal cash dividends) to shareholders of MetLife, or any similar corporate event or transaction,the appropriate committee of the Board of Directors of MetLife, in order to prevent dilution or enlargement of participants’ rights under the applicable plan, shallsubstitute or adjust, as applicable, the number and kind of Shares that may be issued under that plan and shall adjust the number and kind of Shares subject tooutstanding awards. Any Shares related to awards under either plan which: (i) terminate by expiration, forfeiture, cancellation, or otherwise without the issuance ofShares; (ii) are settled in cash either in lieu of Shares or otherwise; or (iii) are exchanged with the appropriate committee’s permission for awards not involvingShares, are available again for grant under the applicable plan. If the option price of any Stock Option granted under either plan or the tax withholding requirementswith respect to any award granted under either plan is satisfied by tendering Shares to MetLife (by either actual delivery or by attestation), or if a StockAppreciation Right is exercised, only the number of Shares issued, net of the Shares tendered, if any, will be deemed delivered for purposes of determining themaximum number of Shares available for issuance under that plan. The maximum number of Shares available for issuance under either plan shall not be reduced toreflect any dividends or dividend equivalents that are reinvested into additional Shares or credited as additional Restricted Stock or Restricted Stock Units.

For a description of the kinds of awards that have been or may be made under the 2015 Stock Plan and 2015 Director Stock Plan and awards that remainedoutstanding under the 2005 Stock Plan, see Note 15 of the Notes to the Consolidated Financial Statements.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information called for by this Item is incorporated herein by reference to the sections entitled “Proposal 1 — Election of Directors for a One-Year TermEnding at the 2019 Annual Meeting of Shareholders — Corporate Governance — Procedures for Reviewing Related Person Transactions,” “Proposal 1 — Electionof Directors for a One-Year Term Ending at the 2019 Annual Meeting of Shareholders — Corporate Governance — Related Person Transactions” and “Proposal 1— Election of Directors for a One-Year Term Ending at the 2019 Annual Meeting of Shareholders — Corporate Governance — Information About the Board ofDirectors — Composition and Independence of the Board of Directors” in the 2019 Proxy Statement.

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Item 14. Principal Accountant Fees and Services

The information called for by this item is incorporated herein by reference to the section entitled “Proposal 2 — Ratification of Appointment of theIndependent Auditor” in the 2019 Proxy Statement.

Part IV

Item 15. Exhibits and Financial Statement Schedules

The following documents are filed as part of this report:

1. Financial Statements

The financial statements are listed in the Index to Consolidated Financial Statements, Notes and Schedules on page 180.

2. Financial Statement Schedules

The financial statement schedules are listed in the Index to Consolidated Financial Statements, Notes and Schedules on page 180.

3. Exhibits

The exhibits are listed in the Exhibit Index which begins on page 374.

Item 16. Form 10-K Summary

None.

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Exhibit Index

(NoteRegardingRelianceonStatementsinOurContracts:In reviewing the agreements included as exhibits to this Annual Report on Form 10-K, pleaseremember that they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure informationabout MetLife, Inc., its subsidiaries or affiliates, or the other parties to the agreements. The agreements contain representations and warranties by each of theparties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreementand (i) should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statementsprove to be inaccurate; (ii) have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement,which disclosures are not necessarily reflected in the agreement; (iii) may apply standards of materiality in a way that is different from what may be viewed asmaterial to investors; and (iv) were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and aresubject to more recent developments. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were madeor at any other time. Additional information about MetLife, Inc., its subsidiaries and affiliates may be found elsewhere in this Annual Report on Form 10-K andMetLife, Inc.’s other public filings, which are available without charge through the U.S. Securities and Exchange Commission website at www.sec.gov.)

Incorporated By Reference

Exhibit No. Description Form File Number Exhibit Filing Date

Filed orFurnishedHerewith

2.1

Plan of Reorganization.

S-1

333-91517

2.1

November 23,1999

2.2 Amendment to Plan of Reorganization, dated as of March 9, 2000. S-1/A 333-91517 2.2 March 29, 2000 2.3

Master Separation Agreement, dated August 4, 2017, between MetLife,Inc. and Brighthouse Financial, Inc.

8-K

001-15787

2.1

August 7, 2017

3.1 Amended and Restated Certificate of Incorporation of MetLife, Inc. 10-K 001-15787 3.1 March 1, 2017 3.2

Certificate of Retirement of Series B Contingent Convertible JuniorParticipating Non-Cumulative Perpetual Preferred Stock of MetLife, Inc.,filed with the Secretary of State of Delaware on November 5, 2013.

10-Q

001-15787

3.6

November 7,2013

3.3

Certificate of Amendment of Amended and Restated Certificate ofIncorporation of MetLife, Inc., dated April 29, 2015.

8-K

001-15787

3.1

April 30, 2015

3.4

Certificate of Designations of 5.250% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C, of MetLife, Inc., filed with theSecretary of State of Delaware on May 28, 2015.

8-K

001-15787

3.1

May 28, 2015

3.5

Certificate of Elimination of 6.500% Non-Cumulative Preferred Stock,Series B, of MetLife, Inc., filed with the Secretary of State of Delaware onNovember 3, 2015.

10-Q

001-15787

3.7

November 5,2015

3.6

Certificate of Amendment of Amended and Restated Certificate ofIncorporation of MetLife, Inc., dated April 29, 2011.

10-K

001-15787

3.4

March 1, 2017

3.7

Certificate of Designation, Preferences and Rights of Series A JuniorParticipating Preferred Stock of MetLife, Inc., filed with the Secretary ofState of Delaware on April 7, 2000.

10-K

001-15787

3.2

March 1, 2017

3.8

Certificate of Designations of Floating Rate Non-Cumulative PreferredStock, Series A, of MetLife, Inc., filed with the Secretary of State ofDelaware on June 10, 2005.

10-K

001-15787

3.3

March 1, 2017

3.9

Certificate of Amendment of Amended and Restated Certificate ofIncorporation of MetLife, Inc., dated October 23, 2017

8-K

001-15787

3.1

October 24,2017

3.10

Certificate of Designations of 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D, of MetLife, Inc., filed with theSecretary of State of Delaware on March 21, 2018.

8-K

001-15787

3.1

March 22, 2018

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Table of Contents

Incorporated By Reference

Exhibit No. Description Form File Number Exhibit Filing Date

Filed orFurnishedHerewith

3.11

Certificate of Designations of 5.625% Non-Cumulative Preferred Stock,Series E, of MetLife, Inc., filed with the Secretary of the State ofDelaware on May 31, 2018.

8-K

001-15787

3.1

June 4, 2018

3.12

Amended and Restated By-Laws of MetLife, Inc., effective September 25,2018.

8-K

001-15787

3.2

October 1, 2018

4.1 Form of Certificate for Common Stock, par value $0.01 per share. S-1/A 333-91517 4.1 March 9, 2000 4.2

Certificate of Designation, Preferences and Rights of Series A JuniorParticipating Preferred Stock of MetLife, Inc., filed with the Secretary ofState of Delaware on April 7, 2000. (See Exhibit 3.7 above).

4.3

Certificate of Designations of Floating Rate Non-Cumulative PreferredStock, Series A, of MetLife, Inc., filed with the Secretary of State ofDelaware on June 10, 2005. (See Exhibit 3.8 above).

4.4

Form of Stock Certificate, Floating Rate Non-Cumulative Preferred Stock,Series A, of MetLife, Inc.

8-A

001-15787

99.6

June 10, 2005

4.5

Certificate of Designations of 5.250% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C, of MetLife, Inc., filed with theSecretary of State of Delaware on May 28, 2015. (See Exhibit 3.4 above).

4.6

Form of Stock Certificate, 5.250% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C, of MetLife, Inc.

8-K

001-15787

4.2

May 28, 2015

4.7

Certificate of Amendment of Amended and Restated Certificate ofIncorporation of MetLife, Inc., dated October 23, 2017. (See Exhibit 3.9above).

4.8

Form of Stock Certificate, 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D, of MetLife, Inc.

8-K

001-15787

4.1

March 22, 2018

4.9

Form of Stock Certificate, 5.625% Non-Cumulative Preferred Stock,Series E, of MetLife, Inc.

8-K

001-15787

4.1

June 4, 2018

4.10

Deposit Agreement, dated June 4, 2018, among the Company,Computershare Inc. and Computershare Trust Company, N.A., asdepositary, and the holders from time to time of the depositary receiptsdescribed therein.

8-K

001-15787

4.2

June 4, 2018

4.11

Form of Depositary Receipt, Depositary Shares each representing a1/1,000th interest in a share of 5.625% Non-Cumulative Preferred Stock,Series E, of MetLife, Inc.

8-K

001-15787

4.3

June 4, 2018

Certain instruments defining the rights of holders of long-term debt ofMetLife, Inc. and its consolidated subsidiaries are omitted pursuant toItem 601(b)(4)(iii) of Regulation S-K. MetLife, Inc. hereby agrees tofurnish to the Securities and Exchange Commission, upon request, copiesof such instruments.

10.1.1

MetLife Policyholder Trust Agreement.

S-1

333-91517

10.12

November 23,1999

10.1.2

Amendment to MetLife Policyholder Trust Agreement.

10-K

001-15787

10.62

February 27,2013

10.2

Five-Year Credit Agreement, dated as of August 4, 2017 (“2017 CreditAgreement”), amending and restating the Five-Year Credit Agreement,dated as of May 30, 2014 (“2014 Credit Agreement”), among MetLife,Inc. and MetLife Funding, Inc., as borrowers, and the other partiessignatory thereto (The 2017 Credit Agreement is included as Exhibit A tothe Second Amendment, dated as of December 20, 2016, to the 2014Credit Agreement).

8-K

001-15787

10.1

December 21,2016

10.3

Purchase Agreement by and among MetLife, Inc. and MassachusettsMutual Life Insurance Company, dated as of February 28, 2016.

10-Q

001-15787

10.1

May 6, 2016

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Incorporated By Reference

Exhibit No. Description Form File Number Exhibit Filing Date

Filed orFurnishedHerewith

10.4

Tax Separation Agreement, dated as of July 27, 2017, by and amongMetLife, Inc. and its affiliates and Brighthouse Financial, Inc. and itsaffiliates.

8-K

001-15787

10.1

August 7, 2017

10.5

MetLife, Inc. 2015 Non-Management Director Stock Compensation Plan,effective January 1, 2015.*

S-8

333-198141

4.1

August 14,2014

10.6

MetLife Non-Management Director Deferred Compensation Plan (asamended and restated, effective January 1, 2005).*

S-8

333-214710

4.1

November 18,2016

10.7

MetLife, Inc. Director Indemnity Plan (dated and effective July 22,2008).*

10-K

001-15787

10.94

February 27,2014

10.8.1

Agreement to Protect Corporate Property executed by William J. Wheeleron June 21, 2001.*

10-Q

001-15787

10.2

November 5,2015

10.8.2

Agreement to Protect Corporate Property, dated January 12, 2015,executed by Esther S. Lee.*

10-K

001-15787

10.13

February 25,2016

10.8.3

Form of Agreement to Protect Corporate Property executed by Steven A.Kandarian, Steven J. Goulart, and Maria M. Morris.*

10-K

001-15787

10.14

February 25,2016

10.8.4

Form of Agreement to Protect Corporate Property executed by MichelKhalaf, effective April 9, 2012.*

10-Q

001-15787

10.15

February 25,2016

10.8.5

Form of Agreement to Protect Corporate Property executed by Ricardo A.Anzaldua, John C. R. Hele, Frans Hijkoop, and Esther Lee on May 25,2016; Steven A. Kandarian on May 31, 2016; Steven J. Goulart on June 2,2016; Maria M. Morris on June 8, 2016 and Martin J. Lippert on July 6,2016.*

10-Q

001-15787

10.1

August 5, 2016

10.8.6

Form of Agreement to Protect Corporate Property executed by SusanPodlogar, effective July 10, 2017, and executed by Ramy Tadros, effectiveSeptember 11, 2017.*

10-Q

001-15787

10.1

August 5, 2016

10.9

MetLife Executive Severance Plan (as amended and restated, effectiveJune 14, 2010).*

10-K

001-15787

10.1

February 27,2015

10.10

MetLife Performance-Based Compensation Recoupment Policy (effectiveas amended and restated November 1, 2017).*

8-K

001-15787

10.1

November 6,2017

10.11.1

MetLife, Inc. 2015 Stock and Incentive Compensation Plan, effectiveJanuary 1, 2015 (the “2015 SIC Plan”).*

S-8

333-198145

4.1

August 14,2014

10.11.2

MetLife, Inc. 2005 Stock and Incentive Compensation Plan, effectiveApril 15, 2005 (the “2005 SIC Plan”).*

10-K

001-15787

10.24

February 27,2015

10.12

MetLife Annual Variable Incentive Plan (effective as amended andrestated January 1, 2015).*

8-K

001-15787

10.11

December 11,2014

10.13.1

MetLife International Unit Option Incentive Plan (as amended andrestated December 3, 2012).*

8-K

001-15787

10.11

February 15,2013

10.13.2

MetLife International Unit Option Incentive Plan, dated July 21, 2011 (asamended and restated effective February 23, 2011).*

10-K

001-15787

10.24

March 1, 2017

10.14

MetLife International Restricted Unit Incentive Plan (as amended andrestated effective February 11, 2013).*

8-K

001-15787

10.6

February 15,2013

10.15

MetLife International Performance Unit Incentive Plan (as amended andrestated effective February 11, 2013).*

8-K

001-15787

10.2

February 15,2013

10.16.1

Form of Stock Option Agreement under the 2005 SIC Plan (effectiveFebruary 11, 2013).*

8-K

001-15787

10.9

February 15,2013

10.16.2

Form of Stock Option Agreement (Three-Year “Cliff” Exercisability)under the 2005 SIC Plan (effective February 11, 2013).*

8-K

001-15787

10.10

February 15,2013

10.16.3

Form of Management Stock Option Agreement under the 2005 SIC Plan(effective as of April 25, 2007).*

10-K

001-15787

10.24

February 27,2013

376

Table of Contents

Incorporated By Reference

Exhibit No. Description Form File Number Exhibit Filing Date

Filed orFurnishedHerewith

10.16.4

Amendment to Stock Option Agreements under the 2005 SIC Plan(effective as of April 25, 2007).*

10-K

001-15787

10.25

February 27,2013

10.16.5

Form of Stock Option Agreement (Ratable Exercisability in Thirds).*

8-K

001-15787

10.7

December 11,2014

10.16.6

Form of Stock Option Agreement (Three-Year “Cliff” Exercisability).*

8-K

001-15787

10.8

December 11,2014

10.16.7

Form of Management Stock Option Agreement under the 2005 SIC Plan(effective December 15, 2009).*

10-K

001-15787

10.28

February 27,2015

10.16.8

Form of Management Stock Option Agreement under the 2005 SIC Plan.*

10-K

001-15787

10.29

February 27,2015

10.16.9

Form of Stock Option Agreement (Ratable Exercisability in Thirds),effective January 1, 2016.*

10-K

001-15787

10.101

February 25,2016

10.16.10

Form of Stock Option Agreement (Three-Year “Cliff” Exercisability),effective January 1, 2016.*

10-K

001-15787

10.102

February 25,2016

10.17.1

Form of Unit Option Agreement (effective February 11, 2013).*

8-K

001-15787

10.12

February 15,2013

10.17.2

Form of Unit Option Agreement (Three-Year “Cliff” Exercisability)(effective February 11, 2013).*

8-K

001-15787

10.13

February 15,2013

10.17.3

Form of Unit Option Agreement (Ratable Exercisability in Thirds).*

8-K

001-15787

10.9

December 11,2014

10.17.4

Form of Unit Option Agreement (Three-Year “Cliff” Exercisability).*

8-K

001-15787

10.10

December 11,2014

10.17.5

Form of Unit Option Agreement (Ratable Exercisability in Thirds),effective January 1, 2016.*

10-K

001-15787

10.103

February 25,2016

10.17.6

Form of Unit Option Agreement (Three-Year “Cliff” Exercisability),effective January 1, 2016.*

10-K

001-15787

10.104

February 25,2016

10.17.7

Form of Unit Option Agreement under the MetLife International UnitOption Incentive Plan (effective February 23, 2011).*

10-K

001-15787

10.25

March 1, 2017

10.18.1

Form of Restricted Stock Unit Agreement (Ratable Period of RestrictionEnds in Thirds; Code Section 162(m) Goals) under the 2015 SIC Plan.*

8-K

001-15787

10.3

December 11,2014

10.18.2

Form of Restricted Stock Unit Agreement (Three-Year “Cliff” Period ofRestriction; No Code Section 162(m) Goals).*

8-K

001-15787

10.4

December 11,2014

10.18.3

Form of Restricted Stock Unit Agreement (Ratable Period of RestrictionEnds in Thirds; Code Section 162(m) Goals) under the 2015 SIC Plan,effective January 1, 2016.*

10-K

001-15787

10.97

February 25,2016

10.18.4

Form of Restricted Stock Unit Agreement (Three-Year “Cliff” Period ofRestriction; No Code Section 162(m) Goals), effective January 1, 2016.*

10-K

001-15787

10.98

February 25,2016

10.18.5

Form of Restricted Stock Unit Agreement (Ratable Period of RestrictionEnds in Thirds), effective February 27, 2018.*

8-K

001-15787

10.3

February 20,2018

10.18.6

Form of Restricted Stock Unit Agreement (Three-Year “Cliff” Period ofRestriction), effective February 27, 2018.*

8-K

001-15787

10.4

February 20,2018

10.19.1

Form of Restricted Unit Agreement (effective February 11, 2013).*

8-K

001-15787

10.7

February 15,2013

10.19.2

Form of Restricted Unit Agreement (Three-Year “Cliff” Period ofRestriction; No Code 162(m) Goals) (effective February 11, 2013).*

8-K

001-15787

10.8

February 15,2013

10.19.3

Form of Restricted Unit Agreement (Ratable Period of Restriction Ends inThirds; Code Section 162(m) Goals).*

8-K

001-15787

10.5

December 11,2014

377

Table of Contents

Incorporated By Reference

Exhibit No. Description Form File Number Exhibit Filing Date

Filed orFurnishedHerewith

10.19.4

Form of Restricted Unit Agreement (Three-Year “Cliff” Period ofRestriction; No Code Section 162(m) Goals.*

8-K

001-15787

10.6

December 11,2014

10.19.5

Form of Restricted Unit Agreement (Ratable Period of Restriction Ends inThirds; Code Section 162(m) Goals), effective January 1, 2016.*

10-K

001-15787

10.99

February 25,2016

10.19.6

Form of Restricted Unit Agreement (Three-Year “Cliff” Period ofRestriction; No Code Section 162(m) Goals), effective January 1, 2016.*

10-K

001-15787

10.100

February 25,2016

10.19.7

Form of Restricted Unit Agreement (Ratable Period of Restriction Ends inThirds), effective February 27, 2018.*

8-K

001-15787

10.5

February 20,2018

10.19.8

Form of Restricted Unit Agreement (Three-Year “Cliff” Period ofRestriction), effective February 27, 2018.*

8-K

001-15787

10.6

February 20,2018

10.20.1

Form of Performance Share Agreement under the 2015 SIC Plan.*

8-K

001-15787

10.1

December 11,2014

10.20.2

Form of Performance Share Agreement under the 2015 SIC Plan, effectiveJanuary 1, 2016.*

10-K

001-15787

10.95

February 25,2016

10.20.3

Form of Performance Share Agreement, effective February 27, 2018.*

8-K

001-15787

10.1

February 20,2018

10.20.4

Form of Performance Share Agreement, effective January 1, 2019. *

8-K

001-15787

10.1

December 13,2018

10.21.1

Form of Performance Unit Agreement (effective February 11, 2013).*

8-K

001-15787

10.3

February 15,2013

10.21.2

Form of Performance Unit Agreement under the 2015 SIC Plan.*

8-K

001-15787

10.2

December 11,2014

10.21.3

Form of Performance Unit Agreement under the 2015 SIC Plan, effectiveJanuary 1, 2016.*

10-K

001-15787

10.96

February 25,2016

10.21.4

Form of Performance Unit Agreement, effective February 27, 2018.*

8-K

001-15787

10.2

February 20,2018

10.21.5

Form of Performance Unit Agreement, effective January 1, 2019. *

8-K

001-15787

10.2

December 13,2018

10.22.1

Award Agreement Supplement, effective January 1, 2016.*

10-K

001-15787

10.105

February 25,2016

10.22.2

Award Agreement Supplement, effective February 27, 2018.*

8-K

001-15787

10.7

February 20,2018

10.23.1

MetLife Auxiliary Pension Plan, dated December 21, 2007 (amending andrestating Part I thereof, effective January 1, 2008).*

10-K

001-15787

10.95

February 27,2013

10.23.2

Amendment #1 to the MetLife Auxiliary Pension Plan (as amended andrestated, effective January 1, 2008), dated October 24, 2008 (effectiveOctober 1, 2008).*

10-K

001-15787

10.98

February 27,2014

10.23.3

Amendment Number Two to the MetLife Auxiliary Pension Plan (asamended and restated, effective January 1, 2008), dated December 12,2008 (effective December 31, 2008).*

10-K

001-15787

10.99

February 27,2014

10.23.4

Amendment Number Three to the MetLife Auxiliary Pension Plan (asamended and restated, effective January 1, 2008) dated March 25, 2009(effective January 1, 2009).*

10-K

001-15787

10.71

February 25,2016

10.23.5

Amendment Number Four to the MetLife Auxiliary Pension Plan (asamended and restated, effective January 1, 2008), dated December 16,2009 (effective January 1, 2010).*

10-K

001-15787

10.102

February 27,2015

10.23.6

Amendment Number Five to the MetLife Auxiliary Pension Plan (asamended and restated, effective January 1, 2008), dated December 21,2010 (effective January 1, 2010).*

10-K

001-15787

10.73

February 25,2016

378

Table of Contents

Incorporated By Reference

Exhibit No. Description Form File Number Exhibit Filing Date

Filed orFurnishedHerewith

10.23.7

Amendment Number Six to the MetLife Auxiliary Pension Plan (asamended and restated, effective January 1, 2008), dated December 20,2012 (effective January 1, 2012).*

10-K

001-15787

10.101

February 27,2013

10.23.8

MetLife Auxiliary Pension Plan, dated August 7, 2006 (as amended andrestated, effective June 30, 2006).*

10-K

001-15787

10.60

March 1, 2017

10.23.9

MetLife Auxiliary Pension Plan, dated December 21, 2006 (amending andrestating Part I thereof, effective January 1, 2007).*

10-K

001-15787

10.61

March 1, 2017

10.23.10

Amendment Number Seven to the MetLife Auxiliary Pension Plan (asamended and restated, effective January 1, 2008), dated December 27,2013 (effective December 10, 2013).*

10-K

001-15787

10.69

March 1, 2017

10.23.11

Amendment Number 6 to the MetLife Auxiliary Pension Plan (asamended and restated, effective January 1, 2008), dated March 5, 2018(effective March 15, 2018).*

10-Q

001-15787

10.9

May 8, 2018

10.23.12

Amendment Number 8 to the MetLife Auxiliary Retirement Plan (asamended and restated, effective January 1, 2008, formerly referred to asthe “MetLife Auxiliary Pension Plan” until March 15, 2018), datedSeptember 4, 2018 (effective March 15, 2018).*

10-Q

001-15787

10.2

November 8,2018

10.23.13

Amendment Number Nine to the MetLife Auxiliary Retirement Plan (asamended and restated, effective January 1, 2008), dated September 26,2018 (effective January 1, 2023).*

10-Q

001-15787

10.3

November 8,2018

10.24.1 Alico Overseas Pension Plan, dated January 2009.* 10-K 001-15787 10.70 March 1, 2017 10.24.2

Amendment Number One to the Alico Overseas Pension Plan (effectiveNovember 1, 2010), dated December 20, 2010.*

10-K

001-15787

10.71

March 1, 2017

10.24.3

Amendment Number Two to the Alico Overseas Pension Plan (effectiveas of November 1, 2011), dated December 13, 2011.*

10-K

001-15787

10.72

March 1, 2017

10.24.4

Amendment Number Three to the Alico Overseas Pension Plan, datedMay 1, 2012 (effective January 1, 2012).*

8-K

001-15787

10.1

May 4, 2012

10.24.5

Amendment Number Four to the Alico Overseas Pension Plan, dated June19, 2017, effective July 1, 2017.*

10-Q

001-15787

10.6

November 6,2017

10.25

MetLife Deferred Compensation Plan For Globally Mobile Employees,effective July 31, 2014, for which Michel Khalaf became eligible July 1,2017.*

10-Q

001-15787

10.4

November 6,2017

10.26.1

Metropolitan Life Auxiliary Savings and Investment Plan (Amended andRestated Effective January 1, 2008).*

10-K

001-15787

10.72

February 27,2013

10.26.2

Amendment 1 to the Metropolitan Life Auxiliary Savings and InvestmentPlan (Amended and Restated, Effective January 1, 2008).*

10-K

001-15787

10.74

February 27,2015

10.26.3

Amendment Number 2 to the Metropolitan Life Auxiliary Savings andInvestment Plan (Amended and Restated Effective January 1, 2008).*

10-K

001-15787

10.48

February 25,2016

10.26.4

Amendment Number 3 to the Metropolitan Life Auxiliary Savings andInvestment Plan (Amended and Restated Effective January 1, 2008).*

10-K

001-15787

10.75

February 27,2013

10.26.5

Amendment Number 4 to the Metropolitan Life Auxiliary Savings andInvestment Plan (Amended and Restated Effective January 1, 2008).*

10-K

001-15787

10.77

February 27,2014

10.26.6

Amendment Number 5 to the Metropolitan Life Auxiliary Savings andInvestment Plan (Amended and Restated Effective January 1, 2008).*

10-Q

001-15787

10.8

May 8, 2018

10.27.1

MetLife Individual Distribution Sales Deferred Compensation Plan,effective January 1, 2010.*

S-8

333-198143

4.1

August 14,2014

379

Table of Contents

Incorporated By Reference

Exhibit No. Description Form File Number Exhibit Filing Date

Filed orFurnishedHerewith

10.27.2

Amendment Number One to the MetLife Individual Distribution SalesDeferred Compensation Plan, effective January 1, 2010.*

S-8

333-198143

4.2

August 14,2014

10.27.3

Amendment Number Two to the MetLife Individual Distribution SalesDeferred Compensation Plan, effective January 1, 2011.*

S-8

333-198143

4.3

August 14,2014

10.27.4

Amendment Number Three to the MetLife Individual Distribution SalesDeferred Compensation Plan, effective January 1, 2013.*

S-8

333-198143

4.4

August 14,2014

10.27.5

Amendment Number Four to the MetLife Individual Distribution SalesDeferred Compensation Plan, effective January 1, 2014.*

S-8

333-198143

4.5

August 14,2014

10.27.6

Amendment Number Five to the MetLife Individual Distribution SalesDeferred Compensation Plan, effective June 1, 2014.*

S-8

333-198143

4.6

August 14,2014

10.28.1

MetLife Deferred Compensation Plan for Officers, as amended andrestated, effective November 1, 2003.*

10-K

001-15787

10.78

February 27,2014

10.28.2

Amendment Number One to the MetLife Deferred Compensation Plan forOfficers (as amended and restated as of November 1, 2003), dated May 4,2005.*

10-K

001-15787

10.52

February 25,2016

10.28.3

Amendment Number Two to the MetLife Deferred Compensation Plan forOfficers (as amended and restated as of November 1, 2003, effectiveDecember 14, 2005).*

10-K

001-15787

10.53

February 25,2016

10.28.4

Amendment Number Three to the MetLife Deferred Compensation Planfor Officers (as amended and restated as of November 1, 2003, effectiveFebruary 26, 2007).*

10-K

001-15787

10.45

March 1, 2017

10.29.1

MetLife Leadership Deferred Compensation Plan, dated November 2,2006 (as amended and restated, effective with respect to salary and cashincentive compensation, January 1, 2005, and with respect to stockcompensation, April 15, 2005).*

10-K

001-15787

10.46

March 1, 2017

10.29.2

Amendment Number One to the MetLife Leadership DeferredCompensation Plan, dated December 13, 2007 (effective as of December31, 2007).*

10-K

001-15787

10.81

February 27,2013

10.29.3

Amendment Number Two to the MetLife Leadership DeferredCompensation Plan, dated December 11, 2008 (effective December 31,2008).*

10-K

001-15787

10.84

February 27,2014

10.29.4

Amendment Number Three to the MetLife Leadership DeferredCompensation Plan, dated December 11, 2009 (effective January 1,2010).*

10-K

001-15787

10.85

February 27,2015

10.29.5

Amendment Number Four to the MetLife Leadership DeferredCompensation Plan, dated December 11, 2009 (effective December 31,2009).*

10-K

001-15787

10.86

February 27,2015

10.29.6

Amendment Number Five to the MetLife Leadership DeferredCompensation Plan, dated December 11, 2009 (effective January 1,2011).*

10-K

001-15787

10.60

February 25,2016

10.29.7

Amendment Number Six to the MetLife Leadership DeferredCompensation Plan, dated December 27, 2011 (effective January 1,2011).*

10-K

001-15787

10.52

March 1, 2017

10.29.8

Amendment Number Seven to the MetLife Leadership DeferredCompensation Plan, dated December 26, 2012 (effective January 1,2013).*

10-K

001-15787

10.53

March 1, 2017

10.29.9

Amendment Number Eight to the MetLife Leadership DeferredCompensation Plan, dated December 17, 2013 (effective January 1,2014).*

10-K

001-15787

10.54

March 1, 2017

10.29.10

Amendment Number Nine to the MetLife Leadership DeferredCompensation Plan, dated December 30, 2014 (effective January 1,2015).*

10-K

001-15787

10.88

February 27,2015

380

Table of Contents

Incorporated By Reference

Exhibit No. Description Form File Number Exhibit Filing Date

Filed orFurnishedHerewith

10.29.11

Amendment Number Ten to the MetLife Leadership DeferredCompensation Plan, dated September 30, 2016 (effective October 1,2016).*

10-K

001-15787

10.56

March 1, 2017

10.29.12

Amendment Number Eleven to the MetLife Leadership DeferredCompensation Plan, dated September 30, 2016 (effective October 1,2016).*

10-K

001-15787

10.57

March 1, 2017

10.29.13

Amendment Number Twelve to the MetLife Leadership DeferredCompensation Plan, dated December 19, 2017 (effective January 1, 2017and April 1, 2017).*

X

10.29.14

Amendment Number Thirteen to the MetLife Leadership DeferredCompensation Plan, dated December 4, 2018 (effective January 1, 2019).*

X

10.30

Member’s Explanatory Handbook for the Metropolitan Life InsuranceCompany of Hong Kong Limited Healthcare Plan (2014).*

10-K

001-15787

10.79

February 25,2016

10.31.1

MetLife Plan for Transition Assistance for Officers, dated April 21, 2014(as amended and restated, effective April 1, 2014 (the “MPTA”)).*

10-Q

001-15787

10.2

August 8, 2014

10.31.2

Amendment Number One to the MPTA, dated December 30, 2014(effective January 1, 2015).*

10-K

001-15787

10.111

February 27,2015

10.31.3

Amendment Number Two to the MPTA, dated March 30, 2016 (effectiveApril 1, 2016).*

10-K

001-15787

10.77

March 1, 2017

10.31.4

Amendment Number Three to the MPTA, dated June 30, 2016 (effectiveJune 30, 2016).*

10-K

001-15787

10.78

March 1, 2017

10.31.5

Amendment Number Four to the MPTA, dated October 24, 2016(effective October 31, 2016).*

10-K

001-15787

10.79

March 1, 2017

10.31.6

Amendment Number Five to the MPTA, dated November 3, 2016(effective October 1, 2016).*

10-K

001-15787

10.80

March 1, 2017

10.31.7

Amendment Number Six to the MPTA, dated July 20, 2017 (effective July1, 2017).*

X

10.31.8

Amendment Number Seven to the MPTA, dated May 1, 2018 (effectiveMay 1, 2018).*

X

10.31.9

Amendment Number Eight to the MPTA, dated September 6, 2018(effective October 1, 2018).*

X

10.31.10

Amendment Number Nine to the MPTA, dated November 15, 2018(effective October 15, 2018).*

X

10.31.11

Amendment Number Ten to the MPTA, dated November 15, 2018(effective October 15, 2018).*

X

10.32

Separation Agreement, Waiver and General Release, dated July 30, 2015,between MetLife Group, Inc. and William J. Wheeler.*

10-Q

001-15787

10.1

November 5,2015

10.33.1

Adjustment of certain compensation terms for Michel Khalaf, effectiveJuly 1, 2012.*

10-Q

001-15787

10.2

November 7,2012

10.33.2

Tax Equalization Agreement dated June 10, 2015 between MetLife, Inc.and Michel Khalaf.*

10-Q

001-15787

10.1

August 6, 2015

10.33.3

Offer Letter, dated March 25, 2009, between American Life InsuranceCompany and Michel Khalaf.*

10-K

001-15787

10.2

March 1, 2017

10.33.4

Letter of Understanding, dated June 15, 2017, effective July 1, 2017, withMichel Khalaf.*

10-Q

001-15787

10.3

November 6,2017

10.33.5

MetLife, Inc. and Metropolitan Life Insurance Company CompensationCommittee and Board of Directors Resolutions of June 13, 2017approving Michel Khalaf’s eligibility to participate in the MetLifeDeferred Compensation Plan For Globally Mobile Employees.*

10-Q

001-15787

10.5

November 6,2017

381

Table of Contents

Incorporated By Reference

Exhibit No. Description Form File Number Exhibit Filing Date

Filed orFurnishedHerewith

10.34.1

Employment Agreement between Christopher G. Townsend and MetLifeAsia Pacific Limited, dated May 11, 2012.*

8-K

001-15787

10.1

May 16, 2012

10.34.2

Letter Agreement dated June 11, 2015 between MetLife, Inc. andChristopher Townsend.*

8-K

001-15787

10.1

June 15, 2015

10.34.3

Letter Agreement entered December 15, 2017 between MetLife, Inc. andChristopher Townsend.*

8-K

001-15787

10.1

November 21,2017

10.35

Sign-on Payments Letter, dated May 24, 2017, effective July 10, 2017,between MetLife Group, Inc. and Susan Podlogar.*

10-Q

001-15787

10.1

November 6,2017

10.36

Sign-on Payments Letter, dated June 14, 2017, effective September 11,2017, between MetLife Group, Inc. and Ramy Tadros.*

10-Q

001-15787

10.2

November 6,2017

10.37

Separation Agreement, Waiver, And General Release, effective October 4,2017, between MetLife Group, Inc. and Maria Morris*

10-K

001-15787

10.123

March 1, 2018

10.38

Separation Agreement and General Release, effective June 12, 2018,between MetLife, Inc. and MetLife Group, Inc. and John C. R. Hele.*

8-K

001-15787

10.1

June 18, 2018

10.39.1

Executive Deferred Compensation Plan for Oscar Schmidt, effective July1, 2009.*

10-Q

001-15787

10.3

August 7, 2018

10.39.2

Amendment Number One to the Executive Deferred Compensation Planfor Oscar Schmidt (effective July 1, 2009).*

10-Q

001-15787

10.4

August 7, 2018

10.39.3

Amendment Number Two to the Executive Deferred Compensation Planfor Oscar Schmidt (effective July 1, 2009).*

10-Q

001-15787

10.5

August 7, 2018

10.39.4

Amendment Number Three to the Executive Deferred Compensation Planfor Oscar Schmidt (effective July 1, 2009).*

10-Q

001-15787

10.6

August 7, 2018

10.39.5

Settlement Agreement & General Release, dated November 19, 2013,between MetLife Group, Inc. and Oscar Schmidt.*

10-Q

001-15787

10.7

August 7, 2018

10.39.6

Letter Agreement, dated April 25, 2018, between MetLife Inc. and OscarSchmidt.*

10-Q

001-15787

10.8

August 7, 2018

10.39.7

General Release And Waiver, dated April 27, 2018, between MetLifeGroup, Inc. and Oscar Schmidt.*

10-Q

001-15787

10.9

August 7, 2018

10.40

Letter Agreement entered May 4, 2018 between MetLife, Inc. and JohnMcCallion.*

8-K

001-15787

10.1

May 7, 2018

10.41

Letter of Understanding, dated August 23, 2018, effective September 1,2018, with Kishore Ponnavolu.*

10-Q

001-15787

10.1

November 8,2018

21.1 Subsidiaries of the Registrant. X

23.1 Consent of Deloitte & Touche LLP. X

31.1

Certification of Chief Executive Officer pursuant to Section 302 of theSarbanes-Oxley Act of 2002.

X

31.2

Certification of Chief Financial Officer pursuant to Section 302 of theSarbanes-Oxley Act of 2002.

X

32.1

Certification of Chief Executive Officer pursuant to Section 906 of theSarbanes-Oxley Act of 2002.

X

32.2

Certification of Chief Financial Officer pursuant to Section 906 of theSarbanes-Oxley Act of 2002.

X

101.INS XBRL Instance Document X

101.SCH XBRL Taxonomy Extension Schema Document X

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Incorporated By Reference

Exhibit No. Description Form File Number Exhibit Filing Date

Filed orFurnishedHerewith

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document X

101.LAB XBRL Taxonomy Extension Label Linkbase Document X

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document X

101.DEF XBRL Taxonomy Extension Definition Linkbase Document X__________

* Indicates management contracts or compensatory plans or arrangements.

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Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalfby the undersigned, thereunto duly authorized.

February 21, 2019

METLIFE, INC. By

/s/ Steven A. Kandarian

Name: Steven A. Kandarian

Title: Chairman of the Board, President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant andin the capacities and on the dates indicated.

Signature Title Date

/s/ Cheryl W. Grisé Director February 21, 2019Cheryl W. Grisé

/s/ Carlos M. Gutierrez Director

February 21, 2019

Carlos M. Gutierrez

/s/ Gerald L. Hassell Director

February 21, 2019

Gerald L. Hassell

/s/ David L. Herzog Director

February 21, 2019

David L. Herzog

/s/ R. Glenn Hubbard Director

February 21, 2019

R. Glenn Hubbard

/s/ Edward J. Kelly, III Director

February 21, 2019

Edward J. Kelly, III

/s/ William E. Kennard Director February 21, 2019

William E. Kennard

/s/ James M. Kilts Director

February 21, 2019

James M. Kilts

/s/ Catherine R. Kinney Director

February 21, 2019

Catherine R. Kinney

/s/ Diana McKenzie Director

February 21, 2019

Diana McKenzie

/s/ Denise M. Morrison Director

February 21, 2019

Denise M. Morrison

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Table of Contents

Signature Title Date

/s/ Steven A. Kandarian Chairman of the Board, President and February 21, 2019

Steven A. Kandarian

Chief Executive Officer (Principal Executive Officer)

/s/ John D. McCallion Executive Vice President and February 21, 2019

John D. McCallion

Chief Financial Officer(Principal Financial Officer)

/s/ William C. O’Donnell Executive Vice President and February 21, 2019

William C. O’Donnell

Chief Accounting Officer(Principal Accounting Officer)

385

Exhibit 10.29.13

AMENDMENT NUMBER TWELVE TO THEMETLIFE LEADERSHIP DEFERRED COMPENSATION PLAN

(As amended and restated effective with respect to salary and Cash Incentive Compensation January 1, 2005 and with respect to StockCompensation, April 15, 2005)

The MetLife Leadership Deferred Compensation Plan ("the Plan'') is hereby amended, effective as of the dates set forth below, as follows:

1. The following shall be added as Section 7.3

Effective September 1, 2017, a Participant will have the option to have the existing Investment Tracking Funds in their DeferredCompensation Account and Matching Contribution automatically rebalanced. Any reallocation of Investment Tracking Funds thatoccurs pursuant to an automatic rebalance will not be considered a Reallocation Election for purposes of Section 7.1(b), and will notcount toward the limit set forth in Section 7.2 of six Reallocation Elections per calendar year.

2. Effective January 1, 2017, Section 4.l shall be revised as follows:

At such times as are determined by the Plan Administrator, each Eligible Associate may complete and submit to the PlanAdministrator a Deferral Election applicable to the Eligible Associate's Compensation payable for services performed in such periodson and after January 1, 2005 and following the date of the Deferral Election (or other such periods consistent with Legal DeferralRequirements) determined by the Plan Administrator. Within thirty (30) days after attaining the status of Eligible Associate in his orher first calendar year as an Officer or 090 Employee, such Eligible Associate may complete and submit to the Plan Administrator aDeferral Election applicable to the Eligible Associate's Compensation payable for services in the current calendar year or otherperiods following the date of the Deferral Election (or other such periods consistent with Legal Deferral Requirements) determined bythe Plan Administrator. An Eligible Associate may revoke a Deferral Election prior to the end of period established by PlanAdministrator for making such Deferral Election, but only to the extent such revocation is consistent with Legal DeferralRequirements. The Plan Administrator shall prescribe the form(s) of Deferral Election.

IN WITNESS WHEREOF, this Amendment Number Twelve to the MetLife Leadership Deferred Compensation Plan is hereby adopted andapproved.

By: /s/ Andrew J. Bernstein PLAN ADMINISTRATOR

Date: 12/19/2017

Witness /s/ Bonita Haskins

Exhibit 10.29.14

AMENDMENT NUMBER THIRTEEN TO THEMETLIFE LEADERSHIP DEFERRED COMPENSATION PLAN

(As amended and restated effective with respect to salary and Cash Incentive Compensation January 1, 2005 and with respect to StockCompensation, April 15, 2005)

The MetLife Leadership Deferred Compensation Plan (“the Plan”) is hereby amended, effective as of the dates set forth below, as follows:

I. Section 7.2 shall be replaced with the following, effective January 1, 2019:

7.2 Unless otherwise determined by the Plan Administrator, a Reallocation Election shall be effective on the date it is received bythe Plan Administrator, or on the following day if it is received by the Plan Administrator at a time when the PlanAdministrator determines that it is not practical or convenient to the operation of the Plan to apply such Reallocation Electionon the date that is received.

II. Section 22.33 shall be replaced with the following, effective March 15, 2018:

22.33 “SIP” shall mean each and all of the MetLife 401(k) Plan, the MetLife Auxiliary Match Plan (and/or any successor plan(s)).

III. Section 4.7 shall be replaced with the following, effective January 1, 2019:

4.7 Effective prior to January 1, 2019, notwithstanding any other provisions of this Plan to the contrary, no Compensationpayable to a Participant less than one hundred eighty (180) days after the first day of the second calendar month following ahardship payment to the Participant under SIP or other nonqualified deferred compensation plan in which the individualparticipates by virtue of employment with any Affiliate shall be deferred under this Plan. Effective as of January 1, 2019,Participants who have received a hardship distribution under SIP or any other deferred compensation arrangement sponsoredby an Affiliate shall be eligible to continue deferring Compensation under this Plan without interruption.

IN WITNESS WHEREOF, this Amendment Number Thirteen to the MetLife Leadership Deferred Compensation Plan is hereby adopted andapproved.

By: /s/Andrew J. Bernstein PLAN ADMINISTRATOR

Date: 12/4/2018

Witness /s/Kathleen Kamocsai

Explanation of Amendment Thirteen toMetLife Leadership Deferred Compensation Plan

Item I – Section 7.2 is amended to eliminate the six-per-year limit on Reallocation Elections that existed prior to January 1, 2019.

Item II – Changes the definition of “SIP” to reflect the name change of SIP and Auxiliary SIP to the MetLife 401(k) Plan and the MetLifeAuxiliary Match Plan, respectively.

Item III – eliminates the six-month suspension of contributions to the Leadership Plan for participants who receive a hardship distributionfrom SIP.

Exhibit 10.31.10

AMENDMENT NUMBER NINE TO THEMETLIFE PLAN FOR TRANSITION ASSISTANCE FOR GRADES 14 AND ABOVE

( Amended and Restated Effective April 1, 2014 )

THE METLIFE PLAN FOR TRANSITION ASSISTANCE FOR GRADES 14 AND ABOVE (the “Plan”) is hereby amended, effective asindicated below, as follows:

1. Effective October 15, 2018, Section 1.4.09 is hereby amended it its entirety to read as follows:

“ §1.4.09 Employee: “Employee” means anyone who:

(a) is employed by the Company or a Subsidiary and compensated in or from the United States; and

(b) is a grade 14M, 14A or 14S or any higher grade, as designated by the Company or a Subsidiary; and

(c) is either:

(1) a regular full-time employee; or

(2) a regular part-time employee whose regularly scheduled annual service is 1,000 hours or more in a 12-monthperiod, and

(d) is not within the definition of “Employee” in the MetLife Plan for Transition Assistance for Grades 13 andBelow; and

(e) is not a temporary employee; and

(f) is not a leased employee within the meaning of Internal Revenue Code §414(n); and

(g) is not performing services for the Company or a Subsidiary under an agreement in which such individualacknowledges that he or she is an independent contractor and that he or she is not entitled to participate in theCompany’s or a Subsidiary’s employee benefit plans, or under an agreement entered into between the Companyor a Subsidiary and some other person (other than a MetLife Enterprise Affiliate), in either case notwithstandingthe fact that a regulatory body or court determines that such an individual is a common law employee; and

(h) notwithstanding any provision of this § 1.4.09 or the Plan to the contrary and in accordance with and subject toSection 8.1 of the Plan, “Employee” shall include any employee or sales agent of the MetLife Premier ClientGroup at Grade 14 or above who becomes a Transferred Employee in accordance with

1

and as such term is defined in the Purchase Agreement by and among MetLife, Inc. and Massachusetts MutualLife Insurance Company dated February 26, 2016; and

(i) effective October 15, 2018, notwithstanding the foregoing, an Employee is also not any individual who is:

(1) treated or classified by the Company or Subsidiary, in their sole and absolute discretion, as an independentcontractor and/or not as a common law employee, which may, but need not, be conclusively evidenced by theCompany or Subsidiary not withholding federal income and/or employment taxes from the individual’s pay;

(2) being paid by any third party pursuant to an agreement or understanding between the Company or Subsidiaryand such third party; and/or

(3) treated or classified by the Company or Subsidiary as a non-employee, consultant, or a seasonal, occasional,limited duration, leased, provisional, or temporary employee; in each case regardless of any contrarygovernmental, judicial, arbitral, or other determination that relates to such employment status or federalincome and/or employment tax withholding with respect to any period.

The classification of “Employee” will be conclusively determined by the Company or Subsidiary in its sole and absolute discretion.

This definition overrides the definition in the MetLife Welfare Benefit Plan, of which this Plan is a Constituent Plan.”

2. Effective October 1, 2018, Section 6.1 of the Plan is hereby amended in its entirety to read as follows:

“§6.1 Amendment . The Company may amend or terminate this Plan or any benefit or coverage thereunder at any time bymeans of a written instrument executed by a person authorized by the Company, subject to the limitation of this section. Except ashereinafter stated, the Chief Executive Officer of the Company or his designate is authorized to amend this Plan by formal action.Any amendment or group of amendments adopted on the same date, which would increase or decrease the annual cost of Planbenefits for Participants by $10 million or more shall be adopted by formal action of the Board of Directors of MetLife, Inc.”

[Signature on Next Page]

2

IN WITNESS WHEREOF, the Company has caused this amendment to be executed on this15 th day of November, 2018 by the duly authorized individual below.

METLIFE GROUP, INC.

By: /s/ Andrew J. Bernstein .Andrew J. Bernstein, Plan Administrator

Witness: /s/ J.N. Eidenberg

3

Exhibit 10.31.11

AMENDMENT NUMBER TEN TO THEMETLIFE PLAN FOR TRANSITION ASSISTANCE FOR GRADES 14 AND ABOVE

( Amended and Restated Effective April 1, 2014 )

THE METLIFE PLAN FOR TRANSITION ASSISTANCE FOR GRADES 14 AND ABOVE (the “Plan”) is hereby amended, effective asindicated below, as follows:

1. Effective October 15, 2018, Section 1.4.09 is hereby amended it its entirety to read as follows:

“ §1.4.09 Employee: “Employee” means anyone who:

(a) is employed by the Company or a Subsidiary and compensated in or from the United States; and

(b) is a grade 14M, 14A or 14S or any higher grade, as designated by the Company or a Subsidiary; and

(c) is either:

(1) a regular full-time employee; or

(2) a regular part-time employee whose regularly scheduled annual service is 1,000 hours or more in a 12-monthperiod, and

(d) is not within the definition of “Employee” in the MetLife Plan for Transition Assistance for Grades 13 andBelow; and

(e) is not a temporary employee; and

(f) is not a leased employee within the meaning of Internal Revenue Code §414(n); and

(g) is not performing services for the Company or a Subsidiary under an agreement in which such individualacknowledges that he or she is an independent contractor and that he or she is not entitled to participate in theCompany’s or a Subsidiary’s employee benefit plans, or under an agreement entered into between the Companyor a Subsidiary and some other person (other than a MetLife Enterprise Affiliate), in either case notwithstandingthe fact that a regulatory body or court determines that such an individual is a common law employee; and

(h) notwithstanding any provision of this §1.4.09 or the Plan to the contrary and in accordance with and subject toSection 8.1 of the Plan, “Employee” shall include any employee or sales agent of the MetLife Premier ClientGroup at Grade 14 or above who becomes a Transferred Employee in accordance with

1

and as such term is defined in the Purchase Agreement by and among MetLife, Inc. and Massachusetts MutualLife Insurance Company dated February 26, 2016; and

(i) effective October 15, 2018, notwithstanding the foregoing, an Employee is also not any individual who is:

(1) treated or classified by the Company or Subsidiary, in their sole and absolute discretion, as an independentcontractor and/or not as a common law employee, which may, but need not, be conclusively evidenced by theCompany or Subsidiary not withholding federal income and/or employment taxes from the individual’s pay;

(2) being paid by any third party pursuant to an agreement or understanding between the Company or Subsidiaryand such third party; and/or

(3) treated or classified by the Company or Subsidiary as a non-employee, consultant, or a seasonal, occasional,limited duration, leased, provisional, or temporary employee; in each case regardless of any contrarygovernmental, judicial, arbitral, or other determination that relates to such employment status or federalincome and/or employment tax withholding with respect to any period.

The classification of “Employee” will be conclusively determined by the Company or Subsidiary in its sole and absolute discretion.

This definition overrides the definition in the MetLife Welfare Benefit Plan, of which this Plan is a Constituent Plan.”

2. Effective October 1, 2018, Section 6.1 of the Plan is hereby amended in its entirety to read as follows:

“§6.1 Amendment . The Company may amend or terminate this Plan or any benefit or coverage thereunder at any time bymeans of a written instrument executed by a person authorized by the Company, subject to the limitation of this section. Except ashereinafter stated, the Chief Executive Officer of the Company or his designate is authorized to amend this Plan by formal action.Any amendment or group of amendments adopted on the same date, which would increase or decrease the annual cost of Planbenefits for Participants by $10 million or more shall be adopted by formal action of the Board of Directors of MetLife, Inc.”

[Signature on Next Page]

2

IN WITNESS WHEREOF, the Company has caused this amendment to be executed on this15 th day of November, 2018 by the duly authorized individual below.

METLIFE GROUP, INC.

By: /s/ Andrew J. Bernstein .Andrew J. Bernstein, Plan Administrator

Witness: /s/ J.N. Eidenberg

3

Exhibit 10.31.7

AMENDMENT NUMBER SIX TO THEMETLIFE PLAN FOR TRANSITION ASSISTANCE FOR GRADES 14 AND ABOVE

(Amended and Restated Effective April 1, 2014)

THE METLIFE PLAN FOR TRANSITION ASSISTANCE FOR GRADES 14 AND ABOVE (the"Plan") is hereby amended, effective as of July 1, 2017, as follows:

1. Section 1.4.09 of the Plan is hereby amended to renumber subsection (n) as subsection (i) to correct any error in numbering.

2. Section 1.4.09(b) of the Plan is hereby amended by replacing grade "14I" with "14A."

3. The first sentence of subsection 1.4.09(i) of the Plan is hereby amended by replacing the reference to "Section 1.4.10" with areference to "Section 1.4.09."

4. Sections 1.4.16 of the Plan and thereafter are hereby amended to be renumbered as Sections 1.4.15 and thereafter to correct anyerrors in numbering.

5. Section 4.4 of the Plan is hereby amended to be renumbered as Section 4.3 of the Plan to correct any error in numbering.

6. Section 8.2(b) of the Plan is hereby amended to replace "MassMutual Transferred Employee" with "CSC Transferred Employee."

IN WITNESS WHEREOF, the Company has caused this amendment to be executed on this 20th day of July, 2017 by the duly authorizedindividual below.

METROPOLITAN LIFE INSURANCE COMPANY

By: /s/ Andrew J. BernsteinAndrew J. Bernstein, Plan Administrator

Witness: /s/ Wanda Mason

Exhibit 10.31.8

AMENDMENT NUMBER SEVEN TO THE

METLIFE PLAN FOR TRANSITION ASSISTANCE FOR GRADES 14 AND ABOVE

(Amended and Restated Effective April 1, 2014)

THE METLIFE PLAN FOR TRANSITION ASSISTANCE FOR GRADES 14 AND ABOVE(the "Plan") is hereby amended, effective as of May 1, 2018, as follows:

1. Section 1.4.05(a) is amended by adding a new subsection (6) to read asfollows:

(6) The expiration or termination of an expatriate assignment, where upon such expiration or termination, theCompany, Subsidiary or MetLife Enterprise Affiliate offers Employee employment in a Suitable Position in his or herhome office. For purposes of this paragraph, the term "Suitable Position" means a position with the Company,Subsidiary or MetLife Enterprise Affiliate that is suitable given the Employee's expertise, skills and compensationlevel (excluding, for this purpose, benefits or allowances provided to the Employee in connection with theassignment). The determination of whether an Employee is offered a Suitable Position shall be exclusivelydetermined by the Plan Administrator.

2. The first paragraph of Section 1.4.11 is amended in its entirety to readfollows:

Job Elimination: "Job Elimination" means the Company's or Subsidiary's determination that (a) an Employee'sposition has been or will be eliminated because of a Company or Subsidiary staffing adjustment or otherorganizational change, expense reduction considerations, office closings or relocations (where such relocation resultsin an Employee becoming eligible to receive benefits under the Company's or a Subsidiary's relocation policy)including but not limited to adjustments in the number of staff in a department or unit or the elimination of all or someof the functions of a department or unit, in which the Employee will not be replaced by another person in the sameposition, or (b) the Employee's expatriate assignment has expired or will be terminated by the Company (without anoffer of employment in a Suitable Position, as defined in Section 1.4.05(b), above); except where the Employee was,as of or immediately before the Date of Discontinuance of Employment, on a leave of absence or otherwise ininactive status, including but not limited to periods for which short-term or long-term disability benefits are paid, for a

1

consecutive period of more than one year (i.e., does not return from leave or inactive status by the first anniversary ofthe beginning of the leave or inactive status) and is not returning immediately upon the conclusion of either (x) leaveunder the Family and Medical Leave Act or other law providing legally-protected leave, or (y) leave granted by theCompany or Subsidiary as a reasonable accommodation of medical limitations.

IN WITNESS WHEREOF, the Company has caused this amendment to be executed on this 1 st day of May, 2018 by the dulyauthorized individual below.

METROPOLITAN LIFE INSURANCE COMPANY

By: /s/ Andrew J. Bernstein

Andrew Bernstein, Plan Administrator

Witness: /s/ Danielle Hodorowski .

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Exhibit 10.31.9

AMENDMENT NUMBER EIGHT TO THEMETLIFE PLAN FOR TRANSITION ASSISTANCE FOR GRADES 14 AND ABOVE

( Amended and Restated Effective April 1, 2014 )

THE METLIFE PLAN FOR TRANSITION ASSISTANCE FOR GRADES 14 AND ABOVE (the "Plan") is hereby amended,effective as of October 1, 2018, as follows:

1. Section 1.4.02 of the Plan is hereby amended to replace "Metropolitan Life Insurance Company" with "MetLife Group, Inc."

2. Section 1.4.19 of the Plan is hereby amended to replace each reference therein to "Metropolitan Life Retirement Plan forUnited States Employees" with "MetLife Retirement Plan."

3. Section l.4.21(c) of the Plan is hereby amended to replace "MetLife Group, Inc." with "Metropolitan Life InsuranceCompany."

4. Section 3.1 of the Plan is hereby amended to replace "Company" with "Employee Benefits Committee of the Company."

5. Section 3.2 of the Plan is hereby amended to replace "Company or its designate" with "person designated as PlanAdministrator by the Employee Benefits Committee of the Company."

6. Section 3.3 of the Plan is hereby amended to replace "Company" with "Employee Benefits Committee of the Company" andto replace "Chief Executive Officer" with "Plan Administrator."

IN WITNESS WHEREOF, the Company has caused this amendment to be executed on this 6 th day of September , 2018 by the dulyauthorized individual below.

METROPOLITAN LIFE INSURANCE COMPANY

By: /s/ Andrew J. Bernstein .Andrew J. Bernstein, Plan Administrator

Witness: /s/ J.N. Eidenberg

Exhibit 21.1

METLIFE, INC.As of 12/31/2018

Wholly-Owned Active Subsidiaries 1

1. 150 NORTH RIVERSIDE PE MEMBER, LLC (DE)2. 23 RD STREET INVESTMENTS, INC. (DE)3. 85 BROAD STREET MEZZANINE LLC (DE)4. 500 GRANT STREET ASSOCIATES LIMITED PARTNERSHIP (CT)5. 500 GRANT STREET GP LLC (DE)6. 1001 PROPERTIES, LLC (DE)7. 1201 TAB MANAGER, LLC (DE)8. 1320 GP LLC (DE)9. 1320 OWNER LP (DE)10. 1320 VENTURE LLC (DE)11. 1925 WJC OWNER, LLC (DE)12. 6104 HOLLYWOOD, LLC (DE)13. 10700 WILSHIRE, LLC (DE)14. AFP GENESIS ADMINISTRADORA DE FONDOS Y FIDECOMISOS S.A. (ECUADOR)15. AGENVITA S.R.L. (ITALY)16. ALICO EUROPEAN HOLDINGS LIMITED (IRELAND)17. ALICO HELLAS SINGLE MEMBER LIMITED LIABILITY COMPANY (GREECE)18. ALICO OPERATIONS, LLC (DE)19. ALTERNATIVE FUELS I, LLC (DE)20. AMERICAN LIFE INSURANCE COMPANY (DE)21. BEST MARKET S.A. (ARGENTINA)22. BORDERLAND INVESTMENTS LIMITED (DE)23. BOULEVARD RESIDENTIAL, LLC (DE)24. BUFORD LOGISTICS CENTER, LLC (DE)25. CC HOLDCO MANAGER, LLC (DE)26. CHESTNUT FLATS WIND, LLC (DE)27. COMMUNICATION ONE KABUSHIKI KAISHA (JAPAN)28. COMPANIA INVERSORA METLIFE S.A. (ARGENTINA)29. CONVENT STATION EURO INVESTMENTS FOUR COMPANY (UK)30. CORPORATE REAL ESTATE HOLDINGS, LLC (DE)31. COVA LIFE MANAGEMENT COMPANY (DE)32. CLOSED JOINT-STOCK COMPANY MASTER D (RUSSIA)33. DELAWARE AMERICAN LIFE INSURANCE COMPANY (DE)

_______________1 Does not include real estate joint ventures and partnerships of which MetLife, Inc. and/or its subsidiaries is an investment partner.

34. ECONOMY FIRE & CASUALTY COMPANY (IL)35. ECONOMY PREFERRED INSURANCE COMPANY (IL)36. ECONOMY PREMIER ASSURANCE COMPANY (IL)37. EL CONQUISTADOR MAH II LLC (DE)38. ENTRECAP REAL ESTATE II LLC (DE)39. EURO CL INVESTMENTS, LLC (DE)40. EXCELENCIA OPERATIVA Y TECNOLOGICA, S.A de C.V. (MEXICO)41. FEDERAL FLOOD CERTIFICATION LLC (TX)42. FIRST AMERICAN – HUNGARIAN INSURANCE AGENCY LIMITED (HUNGARY)43. FUNDACION METLIFE MEXICO, A.C. (MEXICO)44. GLOBAL PROPERTIES, INC. (DE)45. HASKELL EAST VILLAGE, LLC (DE)46. HOUSING FUND MANAGER, LLC (DE)47. HPZ ASSETS LLC (DE)48. HYATT LEGAL PLANS OF FLORIDA, INC. (FL)49. HYATT LEGAL PLANS, INC. (DE)50. INTERNATIONAL INVESTMENT HOLDING COMPANY LIMITED (RUSSIA)51. INTERNATIONAL TECHNICAL AND ADVISORY SERVICES LIMITED (DE)52. INVERSIONES METLIFE HOLDCO DOS LIMITADA (CHILE)53. INVERSIONES METLIFE HOLDCO TRES LIMITADA (CHILE)54. JOINT STOCK COMPANY METLIFE INSURANCE COMPANY (RUSSIA)55. LHC HOLDINGS (US) LLC (DE)56. LHCW HOLDINGS (US) LLC (DE)57. LHCW HOTEL HOLDING LLC (DE)58. LHCW HOTEL HOLDING (2002) LLC (DE)59. LHCW HOTEL OPERATING COMPANY (2002) LLC (DE)60. LOGAN CIRCLE PARTNERS I LLC (PA)61. LOGAN CIRCLE PARTNERS, L.P. (PA)62. LOGAN CIRCLE PARTNERS GP, LLC (PA)63. LOGAN CIRCLE PARTNERS INVESTMENT MANAGEMENT, LLC (DE)64. LONG ISLAND SOLAR FARM LLC (DE)65. LUMENLAB MALAYSIA SDN. BHD. (MALAYSIA)66. MARKETPLACE RESIDENCES, LLC (DE)67. MCPP OWNERS, LLC (DE)68. MET II OFFICE LLC (FL)69. MET II OFFICE MEZZANINE, LLC (FL)70. MET CANADA SOLAR ULC (CANADA)71. METLIFE 425 MKT MEMBER, LLC (DE)72. METLIFE 555 12TH MEMBER, LLC (DE)73. METLIFE 8280 MEMBER, LLC (DE)74. METLIFE 1007 STEWART, LLC (DE)75. METLIFE 1201 TAB MEMBER, LLC (DE)

76. METLIFE ADMINISTRADORA DE FUNDOS MULTIPATROCINADOS LTDA. (BRAZIL)77. METLIFE ALTERNATIVES GP, LLC (DE)78. METLIFE ASIA HOLDING COMPANY PTE. LTD. (SINGAPORE)79. METLIFE ASIA LIMITED (HONG KONG)80. METLIFE ASSET MANAGEMENT CORP. (JAPAN)81. METLIFE ASSIGNMENT COMPANY, INC. (DE)82. METLIFE AUTO & HOME INSURANCE AGENCY, INC. (RI)83. METLIFE BL FEEDER (CAYMAN) LP (CAYMAN ISLANDS)84. METLIFE BL FEEDER, LP (DE)85. METLIFE BORO STATION MEMBER, LLC (DE)86. METLIFE CABO HILTON MEMBER, LLC (DE)87. METLIFE CAMINO RAMON MEMBER, LLC (DE)88. METLIFE CANADIAN PROPERTY VENTURES, LLC (NY)89. METLIFE CAPITAL CREDIT L.P. (DE)90. METLIFE CAPITAL TRUST IV (DE)91. METLIFE CAPITAL, LIMITED PARTNERSHIP (DE)92. METLIFE CB W/A, LLC (DE)93. METLIFE CC MEMBER, LLC (DE)94. METLIFE CHILE ADMINISTRADORA DE MUTUOS HIPOTECARIOS S.A. (CHILE)95. METLIFE CHILE INVERSIONES LIMITADA (CHILE)96. METLIFE CHILE SEGUROS DE VIDA S.A. (CHILE)97. METLIFE CHILE SEGUROS GENERALES S.A. (CHILE)98. METLIFE CHINO MEMBER, LLC (DE)99. METLIFE COLOMBIA SEGUROS de VIDA S.A. (COLOMBIA)100. METLIFE CONSUMER SERVICES, INC. (DE)101. METLIFE COMMERCIAL MORTGAGE INCOME FUND GP, LLC (DE)102. METLIFE CONSQUARE MEMBER, LLC (DE)103. METLIFE CORE PROPERTY FUND GP, LLC (DE)104. METLIFE CORE PROPERTY TRS, LLC (DE)105. METLIFE CREDIT CORP.(DE)106. METLIFE DIGITAL VENTURES, INC.107. METLIFE EMEKLILIK VE HAYAT A.S. (TURKEY)108. METLIFE EU HOLDING COMPANY LIMITED (IRELAND)109. METLIFE EUROPE INSURANCE d.a.c.(IRELAND)110. METLIFE EUROPE d.a.c. (IRELAND)111. METLIFE EUROPE SERVICES LIMITED (IRELAND)112. METLIFE EUROPEAN HOLDINGS, LLC. (DE)113. METLIFE FINANCIAL SERVICES, CO., LTD (SOUTH KOREA)114. METLIFE FM HOTEL MEMBER, LLC (DE)115. METLIFE FUNDING, INC. (DE)116. METLIFE GENERAL INSURANCE LIMITED (AUSTRALIA)

117. METLIFE GLOBAL, INC. (DE)118. METLIFE GLOBAL BENEFITS, LTD. (CAYMAN ISLANDS)119. METLIFE GLOBAL HOLDING COMPANY I GmbH (SWISS I) (SWITZERLAND)120. METLIFE GLOBAL HOLDING COMPANY II GmbH (SWISS II) (SWITZERLAND)121. METLIFE GLOBAL HOLDINGS CORPORATION S.A. De C.V.(MEXICO)122. METLIFE GLOBAL INFRASTRUCTURE LUX GP, S. À.R.L. (LUXEMBOURG)123. METLIFE GLOBAL OPERATIONS SUPPORT CENTER PRIVATE LIMITED (INDIA)124. METLIFE GROUP, INC. (NY)125. METLIFE HCMJV 1 GP, LLC (DE)126. METLIFE HEALTH PLANS, INC. (DE)127. METLIFE HOLDINGS, INC. (DE)128. METLIFE HOME LOANS, LLC (DE)129. METLIFE INNOVATION CENTRE LIMITED (IRELAND)130. METLIFE INNOVATION CENTRE PTE. LTD. (SINGAPORE)131. METLIFE INSURANCE AND INVESTMENT TRUST (AUSTRALIA)132. METLIFE INSURANCE BROKERAGE, INC. (NY)133. METLIFE INSURANCE K.K. (JAPAN)134. METLIFE INSURANCE LIMITED (AUSTRALIA)135. METLIFE INTERNATIONAL HF PARTNERS, LP (CAYMAN ISLANDS)136. METLIFE INTERNATIONAL HOLDINGS, LLC (DE)137. METLIFE INTERNATIONAL LIMITED, LLC (DE)138. METLIFE INTERNATIONAL PE FUND I, LP (CAYMAN ISLANDS)139. METLIFE INTERNATIONAL PE FUND II, LP (CAYMAN ISLANDS)140. METLIFE INTERNATIONAL PE FUND III, LP (CAYMAN ISLANDS)141. METLIFE INTERNATIONAL PE FUND IV, LP (CAYMAN ISLANDS)142. METLIFE INTERNATIONAL PE FUND V, LP (CAYMAN ISLANDS)143. METLIFE INTERNATIONAL PE FUND VI, LP (CAYMAN ISLANDS)144. METLIFE INVESTMENT ADVISORS, LLC (DE)145. METLIFE INVESTMENT MANAGEMENT HOLDINGS (IRELAND) LIMITED (IRELAND)146. METLIFE INVESTMENTS ASIA LIMITED (HONG KONG)147. METLIFE INVESTMENTS LIMITED (UNITED KINGDOM)148. METLIFE INVESTMENT MANAGEMENT HOLDINGS, LLC (DE)149. METLIFE INVESTMENT MANAGEMENT LIMITED (UNITED KINGDOM)150. METLIFE INVESTMENTS PTY LIMITED (AUSTRALIA)151. METLIFE INVESTMENTS SECURITIES, LLC (DE)152. METLIFE INVESTORS DISTRIBUTION COMPANY (MO)153. METLIFE INVESTORS GROUP, LLC (DE)154. METLIFE IRELAND HOLDINGS ONE LIMITED (IRELAND)155. METLIFE IRELAND TREASURY D.A.C. (IRELAND)156. METLIFE LATIN AMERICA ASESORIAS E INVERSIONES LIMITADA (CHILE)157. METLIFE LHH MEMBER, LLC (DE)158. METLIFE LIFE INSURANCE S.A. (GREECE)

159. METLIFE LIMITED (HONG KONG)160. METLIFE LOAN ASSET MANAGEMENT LLC (DE)161. METLIFE MALL VENTURES LIMITED PARTNERSHIP (DE)162. METLIFE MAS, S.A. DE C.V. (MEXICO)163. METLIFE MEMBER SOLAIRE, LLC (DE)164. METLIFE MEXICO HOLDINGS, S. DE R.L. DE C.V. (MEXICO)165. METLIFE MEXICO S.A. (MEXICO)166. METLIFE MEXICO SERVICIOS, S.A. DE C.V. (MEXICO)167. METLIFE MIDDLE MARKET PRIVATE DEBT GP, LLC (DE)168. METLIFE MIDDLE MARKET PRIVATE DEBT PARALLEL GP, LLC (DE)169. METLIFE MIDDLE MARK PRIVATE DEBT PARALLEL, FUND, LP (CAYMAN ISLANDS)170. METLIFE OBSMEMBER, LLC (DE)171. METLIFE OFC MEMBER, LLC (DE)172. METLIFE ONTARIO STREET MEMBR, LLC (DE)173. METLIFE PARK TOWER MEMBER, LLC (DE)174. METLIFE PENSIONES MEXICO S.A. (MEXICO)175. METLIFE PENSION TRUSTEES LIMITED (UK)176. METLIFE PLANOS ODONTOLOGICOS LTDA. (BRAZIL)177. METLIFE POWSZECHNE TOWARTZYSTWO EMERYTALNE S.A. (POLAND)178. METLIFE PRIVATE EQUITY HOLDINGS, LLC (DE)179. METLIFE PROPERTIES VENTURES, LLC (DE)180. METLIFE PROPERTY VENTURES CANADA ULC (CANADA)181. METLIFE REAL ESTATE LENDING LLC (DE)182. METLIFE REAL ESTATE LENDING MANAGER LLC (DE)183. METLIFE REINSURANCE COMPANY OF BERMUDA LTD. (BERMUDA)184. METLIFE REINSURANCE COMPANY OF CHARLESTON (SC)185. METLIFE REINSURANCE COMPANY OF VERMONT (VT)186. METLIFE RETIREMENT SERVICES LLC (NJ)187. METLIFE SAENGMYOUNG INSURANCE COMPANY LTD. (SOUTH KOREA)- (also known as MetLife Insurance

Company of Korea Limited)188. METLIFE SECURITIZATION DEPOSITOR, LLC (DE)189. METLIFE SEGUROS DE RETIRO S.A. (ARGENTINA)190. METLIFE SEGUROS S.A. (URUGUAY)191. METLIFE SEGUROS S.A. (ARGENTINA)192. METLIFE SERVICES AND SOLUTIONS, LLC (DE)193. METLIFE SERVICES CYPRUS LIMITED (CYPRUS)194. METLIFE SERVICES EAST PRIVATE LIMITED (INDIA)195. METLIFE SERVICES EEIG (IRELAND)196. METLIFE SERVICES EOOD (BULGARIA)197. METLIFE SERVICES, SOCIEDAD LIMITADA (SPAIN)198. METLIFE SERVICES SP Z.O.O (POLAND)199. METLIFE SERVICIOS S.A. (ARGENTINA)

200. METLIFE SLOVAKIA S.R.O.(SLOVAKIA)201. METLIFE SOLUTIONS PTE. LTD. (SINGAPORE)202. METLIFE SOLUTIONS S.A.S. (FRANCE)203. METLIFE SP HOLDINGS, LLC (DE)204. METLIFE SYNDICATED BANK LOAN FUND, SCSP (LUXEMBOURG)205. METLIFE SYNDICATED BANK LOAN LUX GP, S.À.R.L. (LUXEMBOURG)206. METLIFE THR INVESTOR, LLC (DE)207. METLIFE TOWARZYSTWO FUNDUSZY INWESTYCYJNYCH S.A. (POLAND)208. METLIFE TOWARZYSTWO UBEZPIECZEN NA ZYCIE I REASEKURACJI S.A. (POLAND)209. METLIFE TOWER RESOURCES GROUP, INC. (DE)210. METLIFE TREAT TOWERS MEMBER, LLC (DE)211. METLIFE WORLDWIDE HOLDINGS, LLC (DE)212. METROPOLITAN CASUALTY INSURANCE COMPANY (RI)213. METROPOLITAN DIRECT PROPERTY AND CASUALTY INSURANCE COMPANY (RI)214. METROPOLITAN GENERAL INSURANCE COMPANY (RI)215. METROPOLITAN GLOBAL MANAGEMENT, LLC. (DE/ IRELAND)216. METROPOLITAN GROUP PROPERTY AND CASUALTY INSURANCE COMPANY (RI)217. METROPOLITAN LIFE INSURANCE COMPANY (NY)218. METROPOLITAN LIFE INSURANCE COMPANY OF HONG KONG LIMITED (HONG KONG)219. METROPOLITAN LIFE SEGUROS E PREVIDÊNCIA PRIVADA S.A. (BRAZIL)220. METROPOLITAN LIFE SOCIETATE de ADMINISTRARE a UNUI FOND de PENSII ADMINISTRAT PRIVAT

S.A. (ROMANIA)221. METROPOLITAN LLOYDS, INC. (TX)222. METROPOLITAN PROPERTY AND CASUALTY INSURANCE COMPANY (RI)223. METROPOLITAN TOWER LIFE INSURANCE COMPANY (NE)224. METROPOLITAN TOWER REALTY COMPANY, INC. (DE)225. MEX DF PROPERTIES, LLC (DE)226. MIDTOWN HEIGHTS, LLC (DE)227. MIM PROPERTY MANAGEMENT, LLC (DE)228. MIM PROPERTY MANAGEMENT OF GEORGIA 1, LLC (DE)229. MISSOURI REINSURANCE, INC. (CAYMAN ISLANDS)230. ML-AI METLIFE MEMBER 1, LLC (DE)231. ML-AI METLIFE MEMBER 2, LLC (DE)232. ML-AI METLIFE MEMBER 3, LLC (DE)233. ML-AI METLIFE MEMBER 4, LLC (DE)234. ML CERRITOS TC MEMBER, LLC (DE)235. ML SLOAN’S LAKE MEMEBR, LLC (DE)236. ML SOUTHLANDS MEMBER, LLC (DE)237. ML VENTURE 1 MANAGER, S. DE R. L. DE C.V. (MEXICO)238. MLA COMERCIAL, S.A. DE C.V. (MEXICO)

239. MLA SERVICIOS, S.A. DE C.V. (MEXICO)240. MLIA MANAGER I, LLC (DE)241. MLIA SBAF MANAGER, LLC (DE)242. ML BRIDGESIDE APARTMENTS LLC (DE)243. ML CAPACITACION COMERCIAL S.A. DE C.V. (MEXICO)244. ML DOLPHIN GP, LLC (DE)245. ML DOLPHIN MEZZ, LLC (DE)246. ML MILILANI MEMBER, LLC (DE)247. ML NEW RIVER VILLAGE III, LLC (DE)248. ML SENTINEL SQUARE MEMBER, LLC (DE)249. ML SOUTHMORE, LLC (DE)250. MLIC ASSET HOLDINGS II LLC (DE)251. MLIC ASSET HOLDINGS LLC (DE)252. MLIC CB HOLDINGS LLC (DE)253. ML SWAN GP, LLC (DE)254. ML SWAN MEZZ, LLC (DE)255. ML TERRACES, LLC (DE)256. MPLIFE, S. DE R.L. DE C.V257. MM GLOBAL OPERATIONS SUPPORT CENTER, S.A. DE C.V. (MEXICO)258. MMP OWNERS, LLC (DE)259. MSV IRVINE PROPERTY, LLC (DE)260. MTC FUND I, LLC (DE)261. MTC FUND II, LLC (DE)262. MTC FUND III, LLC (DE)263. MTL LEASING, LLC (DE)264. NATILOPORTEM HOLDINGS, LLC (DE)265. NEWBURY INSURANCE COMPANY, LIMITED (DE)266. OCONEE GOLF COMPANY, LLC (DE)267. OCONEE HOTEL COMPANY, LLC (DE)268. OCONEE LAND COMPANY, LLC (DE)269. OCONEE LAND DEVELOPMENT COMPANY, LLC (DE)270. OCONEE MARINA COMPANY, LLC (DE)271. OMI MLIC INVESTMENTS LIMITED (CAYMAN ISLANDS)272. PARK TOWER JV MEMBER, LLC (DE)273. PARK TOWER REIT, INC. (DE)274. PARK TWENTY THREE INVESTMENTS COMPANY (UNITED KINGDOM)275. PJSC METLIFE (UKRAINE)276. PLAZA DRIVE PROPERTIES LLC (DE)277. PREFCO DIX-HUIT LLC (CT)278. PREFCO FOURTEEN LIMITED PARTNERSHIP (CT)279. PREFCO IX REALTY LLC (CT)280. PREFCO TEN LIMITED PARTNERSHIP (CT)281. PREFCO TWENTY LIMITED PARTNERSHIP (CT)

282. PREFCO VINGT LLC (CT)283. PREFCO X HOLDINGS LLC (CT)284. PREFCO XIV HOLDINGS LLC (CT)285. PROVIDA INTERNACIONAL S.A. (CHILE)286. SAFEGUARD HEALTH PLANS, INC. (CA)287. SAFEGUARD HEALTH PLANS, INC. (FL)288. SAFEGUARD HEALTH PLANS, INC. (TX)289. SAFEGUARD HEALTH ENTERPRISES, INC. (DE)290. SAFEHEALTH LIFE INSURANCE COMPANY (CA)291. SANDPIPER COVE ASSOCIATES, LLC (DE)292. SANDPIPER COVE ASSOCIATES II, LLC (DE)293. SOUTHCREEK INDUSTRIAL HOLDINGS, LLC (DE)294. ST. JAMES FLEET INVESTMENTS TWO LIMITED (CAYMAN ISLANDS)295. THE BUILDING AT 575 FIFTH AVENUE MEZZANINE LLC (DE)296. THE BUILDING AT 575 FIFTH RETAIL HOLDING LLC (DE)297. THE BUILDING AT 575 FIFTH RETAIL OWNER (DE)298. THE DIRECT CALL CENTRE PTY LIMITED (AUSTRALIA)299. TRANSMOUNTAIN LAND & LIVESTOCK COMPANY (MT)300. VIRIDIAN MIRACLE MILE, LLC (DE)301. WFP 1000 HOLDING COMPANY GP, LLC (DE)302. WHITE OAK ROYALTY COMPANY (OK)

METLIFE, INC.As of 12/31/2018

Companies of which MetLife, Inc. directly or indirectly has actual ownership (for its own account) of 10% through 99% of the totaloutstanding voting stock 2

303. 60 11 th STREET, LLC (DE) 28.91%304. 100 CONGRESS OWNER, LLC (DE) 15.9005%305. 100 CONGRESS REIT , LLC (DE) 15.9005%306. 100 CONGRESS VENTURE, LLC (DE) 15.9005%307. 249 INDUSTRIAL BUSINESS PARK, LLC (DE) 27.4645%308. 249 INDUSTRIAL BUSINESS PARK VENTURE, LLC (DE) 27.4645%309. AFP PROVIDA S.A. (CHILE) 94.7%310. ALICO PROPERTIES, INC. (DE) 51%311. ALTA BURNSIDE, LLC (DE) 26.74175%312. ALTA BURNSIDE VENTURE, LLC (DE) 26.74175%313. AMMETLIFE INSURANCE BERHAD (MALAYSIA) 50.000001%314. AMMETLIFE TAKAFUL BERHAD (MALAYSIA) 49.9999997%315. BIDV METLIFE LIFE INSURANCE LIMITED LIABILITY COMPANY (VIETNAM) 60%316. BLOCK 23 RESIDENTIAL INVESTORS, LLC (DE) 26.019%317. BUFORD LOGISTICS CENTER 2 VENTURE, LLC (DE) 27.4645%318. BUFORD LOGISTICS CENTER BLDG A VENTURE, LLC (DE) 27.4645%319. DENVER PAVILIONS OWNERCO, LLC (DE) 23.128%320. DENVER PAVILIONS VENTURE, LLC (DE) 23.128%321. DES MOINES CREEK BUSINESS PARK PHASE II, LLC (DE) 27.4645%322. DMCBP PHASE II VENTURE, LLC (DE) 27.4645%323. FIFE ENTERPRISE CENTER VENTURE, LLC (DE) 28.91%324. HELLENIC ALICO LIFE INSURANCE COMPANY, LTD. (CYPRUS) 27.5%325. HIGH STREET SEVENTH AND OSBORN APARTMENTS, LLC (DE) 26.74175%326. MAGNOLIA PARK GREENVILLE, LLC (DE) 26.019%327. MAGNOLIA PARK GREENVILLE VENTURE, LLC (DE) 26.019%328. MAXIS GBN S.A.S. (FRANCE) 50%329. MCMIF HOLDCO I, LLC (DE) 34.13%330. MCMIF HOLDCO II, LLC (DE) 34.13%331. MCP – ENGLISH VILLAGE, LLC (DE) 28.91%332. MCP 2 AMES, LLC (DE) 28.91%333. MCP 2 AMES ONE, LLC (DE) 28.91%334. MCP 2 AMES OWNER, LLC (DE) 25.7299%335. MCP 2 AMES TWO, LLC (DE) 28.91%336. MCP 7 RIVERWAY, LLC (DE) 28.91%337. MCP 60 11 TH STREET MEMBER, LLC (DE) 28.91%

_______________2 Does not include real estate joint ventures and partnerships of which MetLife, Inc. and/or its subsidiaries is an investment partner.

338. MCP 100 CONGRESS MEMBER, LLC (DE) 15.9005%339. MCP 249 INDUSTRIAL BUSINESS PARK MEMBER, LLC (DE) 28.91%340. MCP 350 ROHLWING, LLC (DE) 28.91%341. MCP 550 WEST WASHINGTON, LLC (DE) 28.91%342. MCP 1900 MCKINNEY, LLC (DE) 28.91%343. MCP 22745 &22755 RELOCATION DRIVE, LLC (DE) 28.91%344. MCP 3040 POST OAK, LLC (DE) 28.91%345. MCP 4600 SOUTH SYRACUSE, LLC (DE) 28.91%346. MCP 9020 MURPHY ROAD, LLC (DE) 28.91%347. MCP ALLEY24 EAST, LLC (DE) 28.91%348. MCP ASHTON SOUTH END, LLC (DE) 28.91%349. MCP ATLANTA GATEWAY, LLC (DE) 28.91%350. MCP BLOCK 23 MEMBER, LLC (DE) 28.91%351. MCP BUFORD LOGISTICS CENTER 2 MEMBER, LLC (DE) 28.91%352. MCP BUFORD LOGISTICS CENTER BLDG B, LLC (DE) 28.91%353. MCP BURNSIDE MEMBER, LLC (DE) 28.91%354. MCP DMCBP PHASE II MEMBER, LLC (DE) 27.4645%355. MCP DENVER PAVILIONS MEMBER, LLC (DE) 28.91%356. MCP ENV CHICAGO, LLC (DE) 28.91%357. MCP FIFE ENTERPRISE C, LLC (DE) 28.91%358. MCP FIFE ENTERPRISE MEMBER, LLC (DE) 28.91%359. MCP HIGHLAND PARK LENDER, LLC (DE) 28.91%360. MCP LODGE AT LAKECREST, LLC (DE) 28.91%361. MCP MA PROPERTY REIT, LLC (DE) 28.91%362. MCP MAGNOLIA PARK MEMBER, LLC (DE) 28.91%363. MCP MAIN STREET VILLAGE, LLC (DE) 28.91%364. MCP MOUNTAIN TECHNOLOGY CENTER MEMBER TRS, LLC (DE) 28.91%365. MCP NORTHYARDS HOLDCO, LLC (DE) 28.91%366. MCP NORTHYARDS OWNER, LLC (DE) 28.91%367. MCP NORTHYARDS MASTER LESSEE, LLC (DE) 28.91%368. MCP ONE WESTSIDE, LLC (DE) 28.91%369. MCP ONYX, LLC (DE) 28.91%370. MCP PARAGON POINT, LLC (DE) 28.91%371. MCP PLAZA AT LEGACY, LLC (DE) 28.91%372. MCP PROPERTY MANAGEMENT, LLC (DE) 28.91%373. MCP SEATTLE GATEWAY I MEMBER, LLC (DE) 28.91%374. MCP SEATTLE GATEWAY II MEMBER, LLC (DE) 28.91%375. MCP SEVENTH AND OSBORNE MF MEMBER, LLC (DE) 28.91%376. MCP SEVENTH AND OSBORNE RETAIL MEMBER, LLC (DE) 28.91%377. MCP SOCAL INDUSTRIAL – ANAHEIM, LLC (DE) 28.91%378. MCP SOCAL INDUSTRIAL – BERNARDO, LLC (DE) 28.91%379. MCP SOCAL INDUSTRIAL – CANYON, LLC (DE) 28.91%380. MCP SOCAL INDUSTRIAL – CONCOURSE, LLC (DE) 28.91%

381. MCP SOCAL INDUSTRIAL – FULLERTON, LLC (DE) 28.91%382. MCP SOCAL INDUSTRIAL – KELLWOOD, LLC (DE) 28.91%383. MCP SOCAL INDUSTRIAL – LAX, LLC (DE) 28.91%384. MCP SOCAL INDUSTRIAL – LOKER, LLC (DE) 28.91%385. MCP SOCAL INDUSTRIAL – ONTARIO, LLC (DE) 28.91%386. MCP SOCAL INDUSTRIAL – REDONDO, LLC (DE) 28.91%387. MCP SOCAL INDUSTRIAL – SPRINGDALE, LLC (DE) 28.91%388. MCP THE PALMS AT DORAL, LLC (DE) 28.91%389. MCP TRIMBLE CAMPUS, LLC (DE) 28.91%390. MCP UNION ROW, LLC (DE) 28.91%391. MCP VALLEY FORGE, LLC (DE) 28.91%392. MCP VALLEY FORGE, ONE LLC (DE) 28.91%393. MCP VALLEY FORGE OWNER, LLC (DE) 25.7299%394. MCP VALLEY FORGE TWO, LLC (DE) 28.91%395. MCP VOA HOLDINGS, LLC (DE) 28.91%396. MCP VOA I & III, LLC (DE) 28.91%397. MCP VOA II, LLC (DE) 28.91%398. MCP WATERFORD ATRIUM, LLC (DE) 28.91%399. MCP WELLINGTON, LLC (DE) 28.91%400. MCP WEST BROAD MARKETPLACE, LLC (DE) 28.91%401. MCPF ACQUISITION, LLC (DE) 28.91%402. MCPF – NEEDHAM, LLC (DE) 28.91%403. METLIFE, LIFE INSURANCE COMPANY (EGYPT) 84.125%404. METLIFE AMERICAN INTERNATIONAL GROUP AND ARAB NATIONAL BANK COOPERATIVE

INSURANCE COMPANY (SAUDI ARABIA) 30%405. METLIFE COMMERCIAL MORTGAGE INCOME FUND, LP (DE) 29.2%406. METLIFE COMMERCIAL MORTGAGE ORIGINATOR, LLC (DE) 29.2%407. METLIFE COMMERCIAL MORTGAGE REIT, LLC (DE) 29.2%408. METLIFE CORE PROPERTY FUND, LP (DE) 34.13%409. METLIFE CORE PROPERTY HOLDINGS, LLC (DE) 34.13%410. METLIFE CORE PROPERTY REIT, LLC (DE) 34.13%411. METLIFE MIDDLE MARKET PRIVATE DEBT FUND, LP (DE) 63%412. METLIFE MUTUAL FUND COMPANY (GREECE) 90%413. METROPOLITAN LLOYDS INSURANCE COMPANY OF TEXAS (TX)414. MOUNTAIN TECHNOLOGY CENTER VENTURE, LLC (DE) 27.4645%415. MOUNTAIN TECHNOLOGY CENTER VENTURE SUB A, LLC (DE) 27.4645%416. MOUNTAIN TECHNOLOGY CENTER VENTURE SUB B, LLC (DE) 27.4645%417. MOUNTAIN TECHNOLOGY CENTER VENTURE SUB C, LLC (DE) 27.4645%418. MOUNTAIN TECHNOLOGY CENTER VENTURE SUB D, LLC (DE) 27.4645%419. MOUNTAIN TECHNOLOGY CENTER VENTURE SUB E, LLC (DE) 27.4645%420. PNB METLIFE INDIA INSURANCE COMPANY LIMITED (INDIA) 26%421. SINO-US UNITED METLIFE INSURANCE CO., LTD. (CHINA) 50%422. SEATTLE GATEWAY I MEMBER, LLC (DE) 27.4645%

423. SEATTLE GATEWAY II MEMBER, LLC (DE) 27.4645%424. SEATTLE GATEWAY INDUSTRIAL I, LLC (DE) 27.4645%425. SEATTLE GATEWAY INDUSTRIAL II, LLC (DE) 27.4645%426. SEATTLE GATEWAY II VENTURE, LLC (DE) 27.4645%427. SEVENTH AND OSBORN MF VENTURE, LLC (DE) 26.74175%428. SEVENTH AND OSBORN RETAIL, LLC (DE) 26.74175%429. SEVENTH AND OSBORN RETAIL VENTURE, LLC (DE) 26.74175%430. SLR BLOCK 23 RESIDENTIAL OWNER, LLC (DE) 26.019%

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement Nos. 333-214708 on Form S-3 and 333-214710, 333-198145, 333-198143, 333-198141, 333-170879, 333-162927, 333-148024, 333-139384, 333-139383, 333-139382, 333-139380, 333-121343, 333-121342,333-102306, 333-101291, 333-59134 and 333-37108 on Form S-8 of our reports dated February 21, 2019, relating to the consolidatedfinancial statements of MetLife, Inc. and subsidiaries (the “Company”), and the effectiveness of the Company’s internal control over financialreporting, appearing in this Annual Report on Form 10-K of MetLife, Inc. for the year ended December 31, 2018.

/s/ DELOITTE & TOUCHE LLPNew York, New YorkFebruary 21, 2019

Exhibit 31.1CERTIFICATIONS

I, Steven A. Kandarian, certify that:

1. I have reviewed this annual report on Form 10-K of MetLife, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statementsmade, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financialcondition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange ActRules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant andhave:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure thatmaterial information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularlyduring the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, toprovide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness ofthe disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscalquarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, theregistrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely toadversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control overfinancial reporting.

Date: February 21, 2019

/s/ Steven A. Kandarian Steven A. Kandarian

Chairman of the Board, President and

Chief Executive Officer

Exhibit 31.2CERTIFICATIONS

I, John D. McCallion, certify that:

1. I have reviewed this annual report on Form 10-K of MetLife, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statementsmade, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financialcondition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange ActRules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant andhave:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure thatmaterial information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularlyduring the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, toprovide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness ofthe disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscalquarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, theregistrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely toadversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control overfinancial reporting.

Date: February 21, 2019

/s/ John D. McCallion John D. McCallion Executive Vice President and Chief Financial Officer

Exhibit 32.1SECTION 906 CERTIFICATION

CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITEDSTATES CODE

I, Steven A. Kandarian, certify that (i) MetLife, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “Form 10-K”) fully complies withthe requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Form 10-K fairly presents, in allmaterial respects, the financial condition and results of operations of MetLife, Inc.

Date: February 21, 2019

/s/ Steven A. Kandarian Steven A. Kandarian

Chairman of the Board, President and

Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to MetLife, Inc. and will be retained by MetLife, Inc. and furnished tothe Securities and Exchange Commission or its staff upon request.

Exhibit 32.2SECTION 906 CERTIFICATION

CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITEDSTATES CODE

I, John D. McCallion, certify that (i) MetLife, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “Form 10-K”) fully complies withthe requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Form 10-K fairly presents, in allmaterial respects, the financial condition and results of operations of MetLife, Inc.

Date: February 21, 2019

/s/ John D. McCallion John D. McCallion

Executive Vice President and

Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to MetLife, Inc. and will be retained by MetLife, Inc. and furnished tothe Securities and Exchange Commission or its staff upon request.